In her speech, Raskin said examining how bank operations can influence their reputations needs to be part of a regulatory overhaul.
“If we were better able to identify and monitor such free- floating risk, and in so doing, to push bank boards of directors and senior management to pay more attention to reputational risk, we could help reduce the underpricing of these risks,” she said.
Raskin didn’t comment on the U.S. economic outlook or monetary policy in her prepared remarks.
Raskin, 51, was appointed to the Fed’s Board of Governors by President Barack Obama in 2010. She previously served as commissioner of banking regulation for the state of Maryland.