The main underlying reason for such a large increase is the need to restore market confidence. It is a prerequisite to the banks returning to normal functioning that they should have ample capital to meet even the market’s gloomy prognostications. The European Commission, ECB and IMF have endorsed the rigorous approach used.
Mark W Olson: Are banks still special? Remarks by Mr Mark W Olson, Member of the Board of Governors of the US Federal Reserve System, at the Annual Washington Conference of the Institute of International Bankers, Washington, DC, 13 March 2006. *  *  *  Thank you for inviting me to speak to you today.