It is an honor to speak at the Federal Reserve Bank of Atlanta's 20th Financial Markets Conference, and I am grateful to President Lockhart and the organizers for inviting me to do so.1 This evening I would like to take stock of progress on financial reforms in the nonbank financial sector and highlight some principles for approaching prudential regulation of this sector to further strengthen financial stability. The nonbank sector includes firms with diverse business models and practices, many of which differ greatly from those of banks. Even so, nonbank firms and activities can pose the same key vulnerabilities as ... (full story)