Your presence at this Financial Stability Forum is appreciated, as the forum intends to encourage informed debate on, and therefore to enhance the understanding of, the complex and challenging matters related to financial stability.
During the bubble period preceding the crisis, implicit government guarantee by the Government-Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac was one of the causes of the residential bubble in the United States. During the crisis period after the failure of Lehman Brothers, decisive actions backed by the confidence in the government were required in order to end the crisis.