Consequently, thanks to the design of a general provision such as the present one, along with a tightening of the parameters that determine  BIS Review 62/2008  5  the specific provision, the Spanish banking system had the highest volume of provisions among the developed countries when the market turbulence emerged. Last lesson: on how the turbulence affects us all I have attempted to convey to you that, in Spain, banking regulation has proven to be strict, having included concern over procyclicality among its criteria for action, and that Spanish banks have properly managed the risks associated with financial developments in recent years. The absence of a subprime segment, of an originate-to-distribute model, of complex structured products and of off-balance sheet investment vehicles attest to the fact we have all done the right things. Can we afford to be complacent? I would say no, for three reasons. First, because if we have not made certain mistakes, this is largely due to the fact that our financial system has been very traditional, without sophisticated institutions such as those that have most suffered from the turbulence. Second, because, as I have already said, the Spanish economy needs to undergo adjustment in several areas, but essentially in that of residential investment. And third, because the strong interconnections within the financial system, which is today more global than ever, mean that if markets cease to function, that has negative consequences not only for those that generate the problems but for all those participating in them.
William C Dudley: Remarks at the Regional Employment Press Briefing Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the 2010 Regional Employment Press Briefing, New York, 14 April 2010. *  *  *  Good morning and welcome to the New York Fed’s 2010 Regional Employment Press Briefing. The past few years have been an extraordinary time for policymakers. We have been very aggressive in providing support to the economy and it now appears that we are emerging from a deep and protracted recession. Economic activity expanded over the second half of 2009, suggesting that a recovery has begun. While we continue to receive encouraging news, growth is likely to be muted compared with the early stages of past recoveries. As a result, the unemployment rate is likely to decline over the near term at a very gradual pace, if at all. In the labor market, employment has begun to expand. We hope this is the beginning of a sustained period of job growth. Total employment shrank by roughly 8 million jobs since the peak of the cycle, and the current unemployment rate of 9.7 percent remains unacceptably high. At the regional level, here in the New York-New Jersey region, the labor market was not hit as hard as in many areas in the country, and the pace of job losses in our region has eased.