While various approaches could be taken to address capital adequacy and to avoid the unnecessary or inappropriate use of double leverage, I believe such approaches should be measured against the goal of assuring the safety and soundness of the affiliated banks. And finally, the umbrella supervisor should have appropriate enforcement authority, including the authority to require the sale of the bank in extreme situations.
Conclusion It is clear that the financial services industry is changing and that banking powers must also change if banks are to remain competitive. The Board has long supported reforms and strongly urges them today. However, changes such as these carry risks.