Karnit Flug: Policy dilemmas and the role of the central bank in advising government Remarks by Dr Karnit Flug, Governor of the Bank of Israel, at the farewell conference marking the end of her term, Jerusalem, 4 November 2018.
Prior to the crisis, several large firms – including Lehman Brothers, Merrill Lynch, Goldman Sachs, Morgan Stanley, GMAC, and General Electric – took advantage of this opportunity by acquiring ILCs while avoiding consolidated supervision under the BHC Act. The Federal Reserve has long supported closing this loophole, subject to appropriate "grandfather" provisions for the existing owners of ILCs.