One speaker described this as moving from an “experience-centric” approach to “data-centric” models. With standard products such as mortgages, consumer loans, credit cards and (to some extent) small business loans, quite sophisticated statistical methods are beginning to be applied to estimating default risk. The aim is to see, from an analysis of history, which data are most helpful in predicting the probability of default.
In that regard, the Federal Reserve, other federal regulators, and the Treasury Department have stated that they will take any necessary and appropriate steps to ensure that our banking institutions  1  Another important difference is that, unlike in the Asian crisis, investors have not fled U.S. markets. They have, however, fled from many private credit markets.