Congressional critics of the Federal Reserve's bailout powers are not satisfied by the central bank's effort Monday to tighten its own rules on when it can rescue banks, saying the Fed has not gone far enough to rule out future bailouts.

In a statement issued following the Fed's vote on the rule Monday morning, House Financial Services Committee Chairman Jeb Hensarling, R-Texas, said that "'too big to fail' is unfortunately alive and well and this rule from the Federal Reserve doesn't change that."

"Indeed, by leaving the door wide open to future taxpayer-funded bailouts, this final rule compounds the moral hazard problem that lies at the core of 'too big to fail,'" Hensarling added.

Hensarling called on Congress to pass Fed reform legislation the House approved earlier this month that would set even more restrictive limits on the Fed's emergency lending power.

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