She described how the changes in supervision and regulation contained within the Dodd-Frank Act would put new and important brakes on these kinds of build-ups. I agree with her completely about these benefits of the new supervisory and regulatory regime.
But I also agree with her statement that “systemic risk surveillance will demand Herculean efforts by the regulatory agencies.” In my view, this observation means that other elements of the policy environment need to be as supportive as possible of the regulatory agencies.