The Role of the Federal Reserve—Lessons from Financial Crises – March 31, 2016 – William C. Dudley, President and Chief Executive Officer – Remarks at the Annual Meeting of the Virginia Association of Economists, Virginia Military Institute, Lexington, Virginia As prepared for delivery: “…The crisis showed that the regulatory community did not fully grasp the vulnerability of the financial system. In particular, critical financial institutions were not resilient enough to cope with large scale disruptions without assistance, and problems in one institution quickly spread to others.  In response, the Federal Reserve has made significant changes in how we regulate and supervise financial institutions. We have raised capital and liquidity requirements, put banks through annual stress tests, established the Large Institution Supervision Coordination Committee (LISCC) to enable us to evaluate the largest firms collectively and relative to one another, and set up the Office of Financial Stability to enable us to look at the financial system more holistically. Financial stability now receives the attention it deserves. For example, there are now regular briefings and discussions on financial stability at FOMC meetings…”