Speech by Governor Daniel K. Tarullo – Member, Board of Governors of the Federal Reserve SystemAt the Association of American Law Schools 2014 Midyear Meeting, Washington, D.C. June 9, 2014.

“In my remarks this afternoon I will try to further the collaboration between corporate and financial law scholarship by suggesting how the nature of finance and financial regulation affects corporate governance and why, in turn, special corporate governance measures are needed as part of an effective prudential regulatory system. In making the latter argument, I will review some of the measures, both longstanding and more recent, that illustrate the point and then suggest some additional steps that might complement existing prudential regulations. Finally, I will offer some more tentative thoughts on the possible implication of this analysis for corporate law fiduciary duties. A theme running through these remarks will be the centrality of risk–its assessment, assumption, and allocation–in understanding the relationship between corporate governance and financial regulation.”