What is often referred to as “financial engineering” is less likely to become the norm in community banks because such engineering, by definition, may pose hidden risks that could reflect poorly on community bankers’ judgment and negatively affect their image in the community if these  4  See Sarah Bloom Raskin (2011), “Community Bankers and Supervisors: Seeking Balance,” speech delivered at the Federal Reserve Bank of New York Community Bankers Conference, New York, N.Y., April 7.
5  For the purposes of these remarks and for the Federal Reserve’s supervisory programs, the largest banking organizations are generally considered to be those banks and bank holding companies with total consolidated assets of $ billion or greater.