WSJ: You got applause for holding the government’s feet to fire on the growth in the fiscal deficit in your January policy statement, saying such spending is fueling inflation. You have talked about this issue in the past, but never so pointedly. Critics say you should have done so earlier. What’s your response?
National banking supervisory authorities basically regulated domestic banks and the domestic activities of international banks, while the international activities of these banks were not always closely supervised. The collapse in 1974 of Bankhaus Herstatt in Germany and of the Franklin National Bank in the United States prompted the G10 central bank Governors to set up the Basel Committee on Banking Supervision.