The Federal Reserve, itself, is engaged in a multiyear effort to address challenges and opportunities in the current payment system. During my experience in the realm of private equity, I had a chance to interact with many new firms in these areas. The pace of innovation was often dizzying.
In my new role as Vice Chairman for Supervision at the Federal Reserve, I see innovation as something that can and should be fostered, but of course I must also scrutinize these innovations from a different perspective.