We also created a new office within the Fed to identify emerging risks to stability in the broader financial system – both the bank and nonbank financial sectors – and to develop policies to mitigate systemic risk. The Dodd-Frank Act created the interagency Financial Stability Oversight Council, chaired by the Treasury Secretary, and the Federal Reserve is a member.
It is charged with identifying systemically important financial institutions and systemically risky activities that are not subject to consolidated supervision and designating those institutions and activities for appropriate supervision. And it is charged with encouraging greater information sharing and policy coordination across financial regulatory agencies. Where we stand My topic is broad, and my time is short. Let me end with three thoughts.