Fed Reorganizes -- At A Glance

Impetus for Change

The Federal Reserve Bank of New York long had extensive authority to regulate Wall Street banks. But the 2008 financial crisis and bailouts put the New York Fed under a harsh spotlight, leading to calls for change that continue to this day.

Ahead of the Critics

Behind the scenes, a plan by Fed governor Daniel Tarullo has already shifted regulation of the biggest banks to a Washington-based committee he oversees, called LISCC for short. The change is spelled out in a confidential paper called the Triangle Document. Tarullo has sometimes shut New York Fed officials out of meetings on regulatory policies.

Changes in New York, Too

The New York Fed, meantime, is going through a period of soul-searching and change. Among its steps is removing bank examiners from offices at banks they review and stationing them in New York, where they can compare notes.

Certain Strains

Some regulated banks say they now are unsure whether they can depend on feedback from front-line examiners. Others complain of an increase in paperwork and complexity that they doubt makes the system safer.