Regional Fed Chiefs Warn on 'Too Big to Fail' Banks via NASDAQ.com

U.S. efforts to rein in "too big to fail" banks in the wake of the 2008 financial crisis have fallen well short and must be replaced with more aggressive measures to split up or downsize the largest financial firms, a pair of Federal Reserve bank presidents and a top regulatory official will tell lawmakers Wednesday.

"These institutions operate under a privileged status that exacts an unfair and nontransparent tax upon the American people and represents not only a threat to financial stability, but to the rule of law," Dallas Fed President Richard Fisher said in prepared remarks.

Mr. Fisher is slated to appear at the latest hearing of House lawmakers focused on the 2010 Dodd-Frank financial overhaul law and whether it effectively addressed the risks posed by large, complex financial institutions on the broader economy. Richmond Fed President Jeffrey Lacker, Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig, and former FDIC Chairman Sheila Bair are also slated to testify.

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