[Slide 5 – A need to improve banks’ true loss absorbing capacity] [Slide 6 – Focus of current regulatory reforms] The regulatory initiative, which to date most directly addresses the too-big-to-fail problem and the assumption that systemically important banks will be bailed-out by the government, is the recovery and resolution regime. When successfully implemented, the new tools enable an orderly “failure” of banks.
I decided to study economics because it provides powerful tools to help promote a better future for many Americans. I have found different ways to approach that throughout my career—from teaching the next generation of problem solvers, to assessing the challenges facing American manufacturers, to seeing the potential of microfinance for financial inclusion, to promoting maximum employment and stable inflation in my current job.