In a speech at the Federal Reserve Capital Conference, I explained how “regulation by reflex” doesn’t work—for banks or consumers. Rather than preempting crises, bank regulators all too often react to them after the fact. They play the role of a hazmat cleanup team instead of preventing dangerous spillovers from happening in the first place. To fix this, we need a fundamental reset that ties financial regulation to an overarching strategic vision for the financial system. Defining that vision requires value judgments. And so, it cannot be a purely technocratic exercise. Instead, defining a path forward requires leadership with a broad perspective and coordination across the whole of government. The Treasury Department is perfectly positioned to provide that leadership.