While we strive for a well-considered overall supervisory program for our community bank portfolio, we will continue to rely on the examiners in the 12 Federal Reserve Banks to carry out that program in accordance with local conditions and based on the varying situations of community banks.
The action was prompt – the JP Morgan moment was not missed – and the spike of yields was removed. (cf. lesson 1) And what about the longer run? Well there have been consequences, but not those imagined at the outset.