I would like to make one further clarification, on a procedural matter that may be a bit confusing: Although we welcome comments on the draft NPR at this time, bankers should not expect that those comments will be incorporated in the NPR that is released in the Federal Register. That stage will come later in our rulemaking process.
A proposed 120-day comment period will be provided once the final NPR has been released, and all comments given now and during that period will be considered as the final rule is written. Before discussing some of the specifics in the draft NPR, I would like to review the Federal Reserve’s reasons for pursuing Basel II.