Fed's Dudley says more work to be done on safely winding down banks

He said that regulators had done a good job in reducing the possibility of failure of such too-big-to-fail firms by having higher capital and liquidity stress testing but that a system still had to be put in place "where you can actually resolve that firm without it threatening to take down the rest of the financial system."

"There's still more work to go on the resolution side I think," he said during an audience question and answer session at a financial markets conference in Amelia Island, Florida.

(Reporting by Lindsay Dunsmuir; Editing by Diane Craft)