First, we should explore the possibility of publishing the list of service providers subject to supervision by the agencies. This could provide a starting point for community banks by sharing information about the types of companies providing services to a large number of financial institutions. Second, I believe we should increase transparency around our own practices.
This is what economists often refer to as “mean reversion.” What about the significant price increases we’ve seen since 2002? Although mean reversion is frequently observed in the very long run, commodity prices can also experience large and persistent swings over 5-, 10- and even 20-year periods.