by Calculated Risk on 7/10/2014 04:48:00 PM

A speech from Fed Vice Chairman Stanley Fischer Financial Sector Reform: How Far Are We? Here is his conclusion:

The United States is making significant progress in strengthening the financial system and reducing the probability of future financial crises. In particular

• By raising capital and liquidity ratios for SIFIs, and through the active use of stress tests, regulators and supervisors have strengthened bank holding companies and thus reduced the probability of future bank failures.
• Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry, holds out the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer--and in any event at a lower cost than was hitherto possible. However, work in this area is less advanced than the work on raising capital and liquidity ratios.
• Although the BCBS and the FSB reached impressively rapid agreement on needed changes in regulation and supervision, progress in agreeing on the resolution of G-SIFIs and some other aspects of international coordination has been slow.
• Regulators almost everywhere need to do more research on the effectiveness of microprudential and other tools that could be used to deal with macroprudential problems.
• It will be important to ensure that coordination among different regulators of the financial system is effective and, in particular, will be effective in the event of a crisis.
• A great deal of progress has been made in dealing with the TBTF problem. While we must continue to work toward ending TBTF or the need for government financial intervention in crises, we should never allow ourselves the complacency to believe that we have put an end to TBTF.
• We should recognize that despite some imperfections, the Dodd-Frank Act is a major achievement.
• At the same time, we need always be aware that the next crisis--and there will be one--will not be identical to the last one, and that we need to be vigilant in both trying to foresee it and seeking to prevent it.

And if, despite all our efforts, a crisis happens, we need to be willing and prepared to deal with it.
emphasis added