From a longer run perspective, however, there has been a widespread narrowing of intermediation margins, a fairly common decline in “stand alone” credit ratings and a tendency for bank share prices to lag behind the overall index.
In the spirit of this more systemic approach to oversight, the DoddFrank Act created the Financial Stability Oversight Council (FSOC), which is comprised of the heads of a number of federal and state regulatory agencies. The FSOC has fostered greater interaction among financial regulatory agencies as well as a sense of common responsibility for overall financial stability.