Posted by Daniel K. Tarullo, formerly U.S. Federal Reserve Board of Governors, on Monday, May 1, 2017
Editor's Note: Daniel K. Tarullo is former Governor of the Federal Reserve System. This post is based on Mr. Tarullo’s recent remarks at the Woodrow Wilson School, available here.
Tomorrow [April 5, 2017] is my last day at the Federal Reserve. So in this, my final official speech, it seems appropriate to offer a broad perspective on how financial regulation changed after the crisis. In a moment, I shall offer a few thoughts along these lines. Then I am going to address in some detail the capital requirements we have put in place, including our stress testing program. Eight years at the Federal Reserve has only reinforced my belief that strong capital requirements are central to a safe and stable financial system. It is important for the public to understand why this is so, especially at a moment when there is so much talk of changes to financial regulation.