Among the lessons of the crisis are the crucial importance of macroprudential regulation – that is, regulation and supervision aimed at addressing risks to the financial system as a whole – and the need for effective consolidated supervision of every financial institution that is so large or interconnected that its failure could threaten the functioning of the entire financial system.
The Federal Reserve strongly supports the Congress’s ongoing efforts to achieve comprehensive financial reform. In the meantime, to strengthen the Federal Reserve’s oversight of banking organizations, we have been conducting an intensive self-examination of our regulatory and supervisory responsibilities and have been actively implementing improvements.