In addition, to further encourage a more comprehensive and holistic approach to financial oversight, all federal financial supervisors and regulators – not just the Federal Reserve – should be directed and empowered to take account of risks to the broader financial system as part of their normal oversight responsibilities.
Conclusion As we work together to build on the progress already made toward securing a sustained economic recovery, we cannot lose sight of the need to reorient our supervisory approach and to strengthen our regulatory and legal framework to help prevent a recurrence of the events of the past two years.