We expect only one or two dozen institutions to move to the U.S. version of Basel II in the near term, meaning that the vast majority of U.S. institutions will continue to operate under Basel I-based rules, which we intend to amend through a separate rulemaking process.
The U.S. Basel I framework has already been amended more than twenty-five times since its introduction in response to changes in banking products and the banking environment and as a result of a better understanding of the risks of individual products and services. The agencies believe that now is another appropriate time to propose modifications to our Basel I rules.