Michael S. Barr: “We need to make sure that these largest financial firms that are complex and interconnected have tougher regulation…”

SVB failed because of a textbook case of mismanagement by the bank and that Federal Reserve supervisors failed to take forceful enough action.

I can say the banking system is sound and resilient. I think that was really the right thing to do.

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.

The argument for why regulation and monetary policy are both at the Fed is that it is supposed to inform each other.