Why the Fed Is Reviewing Supervision of Largest Banks

The video discusses recent issues with US banks and the Federal Reserve's response, including a review of its supervision practices and an upcoming Senate testimony by New York Fed President William Dudley. It highlights the revolving door between Wall Street and federal regulators, the complexity of bank balance sheets, and the challenges in assessing them. The discussion also covers regulatory capture, the transformation of investment banks into commercial banks, and debates on capital rules and incentives.

Discuss the implications of the 'revolving door' phenomenon in the context of banking regulation.

What are some proposed solutions to simplify capital requirements for banks?