The solution is not to reign in banks, but to catch up to banks, specifically to reform our international capital standards in a way that takes advantage of some of the advances in credit risk measurement and management in the industry. I am not going to be more specific at this point.
Here too the Federal Reserve has been actively engaged in analyzing the emerging tensions between bank practices and regulatory rules and has been working toward recommendations for reform. As you know, regulatory capital standards, at least those that apply to internationally active banks, require international consensus.