Calling the American financial situation 'historic', Federal Bank CEO Sandy Pinalto was blunt in her assessment of the economy.
SANDY PINALTO: "Collectively the information that I've been looking at tells me that the economy is now in a recession although The National Bureau of Economic Research has not yet called one."
Pinalto suggested that getting out of the recession means a lot of restructuring of the economy and of those who regulate it.
PINALTO: "I don't want us to be very hasty in crafting reforms. I really do want us to take the time to try to anticipate what the future financial landscape is going to look like, and put together a structure and a system that will keep that system safe and sound."
Pinalto was not shy in placing blame for the economy's slide - charging that lax underwriting standards, overly complex products, and excessive leverage lead to much of the housing boom and bust... and that financial leaders were too dependent on models based on historical assumptions, rather than watching how current markets react to changing conditions.
She said the next congress, and the incoming administration, need to and no doubt will - seek stricter regulation and more government oversight.
