Notwithstanding such unanswered questions, if there were a desire to persist in separating sovereign bonds into safe and less safe components, the obvious thing to do would be for each government to package its own bonds into different tranches so that especially safe national securities would then be created. 5.
As we have emphasized continually during the past sixteen months, this critical obligation must be among the very highest of priorities for bank management and boards of directors. Policy Guidance and Supervisory Reviews The Federal Reserve continues to work closely with the other banking agencies that comprise the Federal Financial Institutions Examination Council (FFIEC) to address the banking industry’s Year 2000 readiness.