For each of about thirty large, complex banking organizations – in Washington parlance, LCBOs – the Federal Reserve has already established dedicated teams of examiners, supplemented by experts in areas ranging from clearance and settlement to value-at-risk and credit-risk models. Each LCBO team is directed by a senior Reserve Bank official.
Both that “central point of contact” and his or her supervisory team will be charged with following one LCBO and understanding its strategy, controls, and risk profile. Jointly, these teams will represent the Federal Reserve supervisory pillar as it applies to LCBOs.