In addition, we are strongly encouraging institutions to improve and/or build out their risk functions, so that independent risk managers are empowered to dig deep for latent risks, including concentrations that often arise only in times of stress.
The Federal Reserve has also taken steps to help address the costs of foreclosures on communities. The Community Affairs offices of the Board of Governors and all 12 Reserve Banks held a series of forums in 2008, entitled "Recovery, Renewal, Rebuilding," that explored the problems and highlighted promising solutions.