Another class of assets that could be held in the Fed's portfolio consists of securitized assets other than mortgage-backed securities--an asset class that has been expanding rapidly. Finally, equities could be held as well as private debt. This market, including both equities directly held and those held indirectly through ownership of shares in mutual funds, is about $ trillion.
However, many of the details are left to be set by the European Commission, the Committee of European Bank Supervisors, and other entities. While both approaches have merit, we believe the option we have chosen is likely to be more successful in promoting risk-appropriate compensation practices.