I could go on. Needless to say, it’s a complicated regulatory system. And such a fragmented structure itself demands unusual and extensive degrees of coordination and cooperation among financial regulators so as to maximize the potential for comprehensive and harmonized regulation. Without such coordination and cooperation, there will be regulatory gaps and overlaps.
From this perspective, it made sense to create yet another regulatory body – the Financial Stability Oversight Council – which is dedicated to the goal of coordination. The FSOC calls for agency head and senior-level staff participation of relevant financial regulatory bodies, requires regular meetings and reports on emerging risks to financial stability, and designates systemically important financial institutions.