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Daniel Tarullo is leaving the US Federal Reserve next week with little fanfare: a speech at Princeton on Tuesday; a farewell to colleagues the day after.When Mr Tarullo arrived at the Fed in February 2009, appointed by Barack Obama to overhaul the central bank's approach to regulation, the big US banks were in a terrible state: lacking capital and liquid assets, too reliant on short-term funding, and with risk-management systems that were mostly unfit for purpose.Not many bankers will be sad to see Mr Tarullo go, however.One head of a top-10 bank uses the term "reckless conservatism" to describe the governor's repeated ratcheting-up of capital and liquidity requirements for the biggest and most complex banks without considering possible ill-effects.Citi, BofA, Morgan Stanley, Goldman Sachs and JPMorgan were all rapped for failings in this area during the Tarullo years.One thing is for sure: with Mr Tarullo out of the picture, the prospect of regulatory relief for the banks seems brighter.
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