The crisis forced the United Kingdom and Italy out of the ERM and forced others (Portugal and Spain) to devalue their currencies. The ERM crisis was an apt illustration of the difficulties of trying to manage exchange rates among countries operating under markedly different economic conditions.
The three banking agencies are carefully considering these and all comments received on the proposal and hope to finalize the rulemaking this spring. The Federal Reserve also intends to work this year toward finalization of its proposals to implement the enhanced prudential standards and early remediation requirements for large banking firms under sections 165 and 166 of the Dodd-Frank Act.