The statement also noted that, "the agencies will not penalize financial institutions that pursue reasonable workout arrangements with borrowers who have encountered financial problems." It further stated that, "existing supervisory guidance and applicable accounting standards do not require institutions to immediately foreclose on the collateral underlying a loan when the borrower exhibits repayment difficulties."
Although your papers concentrate on the equity premium, I would like to take a few minutes today to broaden the discussion to encompass risk premiums in other markets and to highlight the connections between risk premiums and monetary policy.