For instance, in the Fortis case, I doubt that Dutch and Belgian ministries would have broken up the bank along national borders, in an instant probably destroying vast economic value. The Icelandic case could also have turned out differently, had there been better cooperation with British and Dutch authorities. With frequent interaction with its foreign counterparts, the inertia of the Icelandic supervisory authority would have been unlikely. I could continue providing examples, but the point is that, in most cases, the outcome would have been very different – and far better. For whatever reasons authorities and ministries have not cooperated across borders, there is no excuse anymore. We need better coordination. And setting up a Cross-Border Stability Group is an important step in the right direction. But, despite all its virtues, cooperation does not always work. Legal barriers, political motives and cultural clashes may all inhibit willingness to cooperate. I therefore believe the new European supervisory structure – currently being considered by the Council and the Parliament – is an important step in the right direction. Among other things, this new structure will include formal European Supervisory Authorities. These authorities will be equipped with a number of tools to use when cooperation fails: they will be able to mediate when supervisory authorities do not agree on supervision and remedies; they will be able to take action when national supervisory authorities neglect community law, and so on.
But it also extends to tending to the so-called culture of the institution – for example, ensuring that good ideas rise to the top no matter where they originate, and that people feel comfortable to challenge the conventional wisdom. These challenges are energizing, and that’s why being president of the New York Fed is the greatest job in the world. And I am confident that, because of the talent and dedication of our staff, the New York Fed will succeed in surmounting the challenges it faces now and will face over the next 100 years. And to drive home the point of our staff’s dedication, I would like to highlight the efforts of one person, Rosemary Lazenby, who has made this exhibit possible. Rosemary is the longest tenured employee at the Bank – 55 years – she is our resident historian and curator and she has delayed her retirement in order to develop this centennial exhibit. Her efforts are just another example of what really glistens at 33 Liberty Street (and I am not referring to the gold in our vault). Thank you Rosemary, and thank you all for coming out this this evening to enjoy the centennial exhibit. BIS central bankers’ speeches  3