Speaking personally, however, I think that we should not become unrealistically demanding in seeking specification of such proposals, particularly when a proposal itself provides for ongoing refinement. For example, my sense is that the provision in the House bill that would empower banking regulators to prevent acquisitions that would increase systemic risk could be sensibly and effectively elaborated over time.
We should also be thinking more seriously about ensuring that safety and soundness requirements for some types of activities – residential mortgage lending comes to mind – apply throughout the financial system, without regard to the regulated status of the lender.