There has been a tendency to give supervision the blame for problems that have originated elsewhere, or to seek supervisory remedies for problems that might be better solved in other ways.
I would also note that supervision can sometimes be part of the “problem” rather than part of the solution – particularly when there has been excessive regulatory forbearance and/or excessive reliance on the public safety net. I believe that supervision should be seen as only one of the factors influencing the health of the financial system.