Disclosure and Market Discipline Although we disagree with the need for banking organizations to revise previous financial statements, battling the SEC on many of these issues seems not the proper course. They have an obligation to enforce sound reporting and disclosure practices as best they can, and our financial markets have been well served in the process.
As we highlighted in our most recent MPR, our approach will always be guided by comprehensive, considered analysis and informed judgment rather than mechanical rules. This is particularly important in the current environment of material external headwinds. To state the obvious, if the outlook for growth and inflation changes, the path for monetary policy will be affected accordingly.