We have continued this productive work with our colleagues overseas during the development and implementation of Basel II, but to most effectively tackle some of the issues that have come to our attention, we need to take the important next step of actually implementing Basel II for U.S. banking organizations.
Once we do so, I believe that we can effectively manage the issues that arise, given our past experience with cross-border supervision. In addition, some concerns have been voiced that adoption of a new capital framework for the largest and most complex U.S. banking organizations could disadvantage other U.S.  4  BIS Review 81/2007  banking organizations, particularly the smaller banks.