Michael S. Barr: “I believe that it would be a serious mistake to rely only on the bankruptcy courts.”

I have said repeatedly that banks, according to our rules, are well-capitalized today. Our banking system is sound and resilient.

I share your outrage about it. I just want to make sure we get to the facts.

The Federal Reserve's rules, issued in the wake of the legislation that was issued in 2019, did have the effect of lowering supervisory and regulatory standards for firms.

I don't agree with that assessment. I think that capital in general is facilitating strong lending to all communities, and having strong capital in the system is critical for doing that.