Fed's Tarullo: 'Not There Yet' on Too-Big-to-Fail

The video discusses the progress made in addressing the 'too big to fail' problem, highlighting improvements in the resiliency of major financial institutions through increased capital levels and better liquidity management. It emphasizes the importance of stress tests as a key supervisory innovation to ensure financial stability. The video also reflects on lessons from the financial crisis, stressing the need for continuous adaptation in the financial regulatory system to address emerging risks.

What were some of the key failures in risk management observed during the financial crisis?

Why is it important for the entire financial system to be resilient, even if individual banks are not considered 'too big to fail'?