Surely, market participants did not presume that the Federal Reserve was a mere spectator to market developments. Nonetheless, discussions of the Fed and financial stability may have seemed somehow anachronistic with the new paradigm sweeping financial markets. How quickly times change. As you well know, by mid-August, volatility spiked in many markets. Risk premiums widened significantly. Term premiums reappeared with force.
In between, there is a range of options such as asset protection schemes (APSs), securitisation and synthetic securitisation and the creation of asset management companies (AMCs), which in the past often involved state intervention (see Chart 10)  10 / 13  BIS central bankers' speeches  All of these options require a considerable push for structural reforms.