But the markets still don’t know what the effects of the imminent turnaround in US monetary policy will be on long-term interest rates and global bond markets. It obviously brings uncertainty. Are you ready, if need be, to do more, and what would be your preferred instruments? We have clearly said that we are ready to do more, if this became necessary.
Clearly, there is a natural tension between the private interests of banks in maximizing shareholder profits, on the one hand, and the public interest in protecting the federal safety net and promoting bank safety and soundness, on the other hand. Lastly, some have suggested that perhaps Basel IA could serve as a standardized approach for our core Basel II banks.