Who Will Watch the Banks Under Trump?

Nearly a decade after a devastating financial crisis, the U.S. remains poorly prepared for a repeat. So it’s unsettling that Daniel Tarullo, the Federal Reserve official who has done the most to make the country’s banks stronger, plans to step down -- and all the more important that President Donald Trump find a worthy replacement.

The 2008 crisis exposed weaknesses at the heart of the U.S. financial system. Big banks had so little loss-absorbing capital that they rapidly faltered, bringing down the economy and leaving the government with no option but to rescue them at taxpayer expense. Shortages of cash made matters worse, forcing emergency asset sales that added to the losses.