In the fall of 2008, the failure or near-failure of several of these firms – many of which we did not supervise at the time – sparked a panic that engulfed the financial system and much of the economy. Today we aim to regulate and supervise financial firms in a manner that promotes the stability of the financial system as a whole.
This shift in focus has led to a comprehensive change in our regulation and supervision of large financial institutions. As I will discuss in more detail, we have introduced a series of requirements for large banking organizations that reduce the risks to the system and our economy that could result from the failure or distress of these institutions.