I think Tim Geithner has put the spotlight on many of the right questions. It is up to supervisors and those charged with financial stability to try to foster a climate in which the risks are managed in a way which does not quench the competitive inventiveness of markets, but still secures resilience when, inevitably, more difficult times arrive.
1  For an elaboration of this theme, see an earlier http://www.rba.gov.au/Speeches/2006/sp_dg_270506.html. BIS Review 85/2006  speech  ‘Risk  and  the  Macroeconomy’,  available  at  3