As I indicated a few minutes ago, nothing in FDICIA's systemic risk exception prevents implementation of such a policy. At the Federal Reserve, developing such procedures is already a high priority. For example, in 1999 I chaired a committee of Board members and Reserve Bank presidents that assessed the issues and took action in a number of areas, and contingency planning is ongoing.
More recently, a study by the Group of Ten nations, directed by my colleague on the Board, Vice Chairman Roger W. Ferguson, Jr., highlighted the importance of this issue in an international context. Although considerable evidence shows that market discipline is an important force in controlling bank risk taking, I believe that reinforcing the effectiveness of market discipline should also be a high priority.