These regulations are well intended and often have the desired outcome; however, in spite of the regulators’ best efforts, they can be burdensome, and compliance with them may well consume resources that might go to providing more or better goods and services. This is not an argument against regulation; sound regulation is needed.
Having now been immersed for the last two years both in the practice of supervision and in the complementary relationship between the regulatory and supervisory processes, I realize that this wasn’t true then, and is certainly not true now. It is not a drafting accident that the Dodd Frank Act gave my position at the Federal Reserve the title of Vice Chairman for Supervision.