*  *  *  Distinguished guests, I would like to welcome you to this conference on the “Regulation of Systemic Risk,” which is jointly sponsored by the Federal Reserve Board and the Journal of Money, Credit and Banking.1 It is the fourth conference in a series that was initiated in 2005 and is held every two years.
Our experience has been that a graduated pace wins credibility since it avoids disruptions and roll-backs in the short run while at the same time allowing the beneficiaries to build a consensus in favour of continuing reforms. A key issue is that of managing expectations.