The third pillar of the Basel framework is market discipline. The market is a great taskmaster. Greater transparency through public disclosure imposes strong incentives on institutions to conduct their business in a safe, sound and efficient manner. And it punishes institutions that do not. Market discipline is not a replacement for strong capital and vigilant oversight, but Market discipline is built on financial disclosure.
Market discipline is built on financial disclosure.
Last year, PricewaterhouseCoopers examined our risk disclosure and advised us that Freddie Mac is among the best of the best in this disclosure. These disclosures allow investors and the public to judge our financial strength for themselves. Now, Freddie Mac is raising the bar. Our six commitments bring unparalleled transparency to our operations, promote market discipline and enhance our capital strength. The commitment we announced last October was to obtain a rating once a year.