Based on the fallout experienced in the housing crisis, Federal Reserve Governor Elizabeth Duke, states that this is only proof that there needs to be stricter vigilance of the banking division and more adherence to rules and regulations. She also brought into doubt the allowing of banks to affiliate with commercial organizations. In a prepared statement to the American Bankers Association (ABA) Duke said that they (bankers) "have a responsibility to act in a safe and sound manner" and should do more to assist in halting the rising number of foreclosures affecting the nation. She also commented that the allegiance of banks and commercial firms "threatens the ability of banks to continue to serve as effective and objective intermediaries of credit" as it opens up banks to the same risks that commercial organizations face.

Duke has been repeatedly pushing for increased policy action to counteract the weakening housing sector, as it is hurting the entire economy and straining the U.S. Financial system. She feels that the crisis is in part due to uneducated borrowers who were not properly informed of the risks they were undertaking, and over eager lenders, who did not make sure of a borrowers ability to make regular payments. These factors are why she believes increased and steady regulation is needed of the banking sector. Duke stated that,"One of the lessons we have learned in the current crisis is that different levels of supervision and enforcement can cause problems, even when institutions are ostensibly following the same regulation,".

On the current weakness of the economy, she warned lawmakers that "Weakness in the housing sector remains a significant drag on the macroeconomy and is reinforcing the strains in the financial system," She also feels that the 2 million foreclosures that hit the market last year, are not going to stop anytime soon, "Even under optimistic assumptions for the number of loan modifications and other forms of private and public assistance that may be realized, the pace at which foreclosures are likely to be initiated is likely to remain extremely elevated,". In her opinion, banks need to implement clear and direct policies to speed up short sales as well as develop policies to let homeowners stay in their properties as renters if they are not able to as buyers, that way at least there would be some income for the banks and assist more troubled families.