Yesterday, we decided on the implementation of the programme for purchases of eurodenominated covered bonds issued in the euro area. The decision to buy covered bonds was motivated from the fact that these bonds are a segment of the private securities markets that has been particularly affected by the financial turmoil.
To give the Fed the capacity to meet this responsibility, the report (p.10) specifies that it should have the authority to regulate "[a]ny financial firm whose combination of size, leverage, and interconnectedness could pose a threat to financial stability if it failed (Tier 1 FHC) …. regardless of whether the firm owns an insured depository institution".