Within the Federal Reserve System we have a variety of working groups and committees working to this end. We also have the benefit of ongoing work and recent reports by the Basle Committee on Banking Supervision and the Group of 22. I expect that these efforts will result in concrete proposals soon. Market discipline is about information and incentives.
Market participants must have access to reliable and timely information on the financial conditions and prospects of banking firms, and both the market participants and the firms must have incentives to respond to this information. With respect to information, we need to consider what additional disclosure would contribute to enhanced market discipline.