Douglas Elliott, a Brookings Fellow in Economic Studies, was an investment banker for two decades prior to joining Brookings. He assesses the current state of the financial sector and outlines his expectations for financial regulatory reform. Elliott is optimistic about the passage of financial regulatory reform for a number of reasons, including the political risk of opposing reform when the public is passionate about the need for it. Key reforms include higher capital and liquidity requirements for banks, enhanced resolution authority in the case of failed non-banks, and establishment of a Consumer Financial Protection Agency and an overall systemic risk monitor. Elliott offers his views of how effective these reforms will be in practice.