all the CEOs) were concerned with excessive risk taking in the markets and appalled by the erosion of underwriting standards. The bankers complained about all the covenant-lite and bridge loans they felt compelled by competitive pressure to make. I remember Jamie Dimon, the JPMorgan Chairman and CEO, saying that such loans did not make sense.
Unfortunately, the fixed exchange rate meant that policy-makers  BIS Review 44/2007  1  had to focus monetary policy on exchange rate stability, rather than on steps that would have been appropriate to stabilize domestic prices.