WASHINGTON, Nov 20 (Reuters) - New York Federal Reserve President William Dudley defended the system for supervising major banks, saying it has been dramatically improved and made safer since the 2007-2009 financial crisis.
In testimony prepared for a Senate Banking Committee hearing on Friday but released on Thursday, Dudley said “it is undeniable that banking supervisors could have done better in their prudential oversight of the financial system” in advance of the financial crisis.
But changes made since then, including increased capital requirements and improved supervision have made the system safer, he said.
The Senate committee hearing was called after a series of critical reports, including the release of tapes secretly made by a former New York Fed supervisor that indicated a lax approach in oversight of major institutions like Goldman Sachs. (Reporting by Howard Schneider; Editing by Paul Simao)