to the destabilizing effects of high foreclosure rates. i visited california's inland empire and los angeles, as well as areas in atlanta, that until recently were economically vibrant. many coastal cities – even those with jobs and growing populations – now are in distress because of high rates of foreclosure. for instance, the florida cities of cape coral, miami, orlando, tampa, and sarasota are among those with the highest rates of foreclosure – between 3. 8 and 10 percent. these areas, and others in the west, such as las vegas and phoenix, experienced very high rates of new home construction and speculative investments that resulted in unsustainable price escalation throughout the early part of this decade. 4 vacant properties are creating a different kind of problem in some california markets. indeed, as investors sense that home prices have bottomed out, they are approaching servicers with cash offers for the bulk purchase of properties. in fact, community organizations in areas of california complain that investor interest has heated up to the point that qualified first - time homebuyers and local community organizations are being crowded out of the market. foreclosure rescue scams that have taken up residence in nearly every community appear to be even more prevalent in stronger market areas where retaining title to a home is more economically feasible. one counselor in los angeles told me that as many as 80 percent of the homeowners she counseled had been victims of rescue scams. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. http : / / www. detroitagriculture. org / garden _ resource _ program. htm. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. in addition to the economic dynamics of any particular city, it is clear that, even within metropolitan areas, community stabilization issues can vary from neighborhood to neighborhood. for example, cleveland's highest vacancy rates are primarily in its urban core, while in atlanta, the problem of high foreclosure rates is found not only in the urban core, but also in outer suburban communities that experienced significant growth

cultural change. • in the first panel, we will hear about engagement with employees – especially those who are skeptical of the benefits or practicality of reform. • in the second panel, we will discuss accountability – not only in the sense of being “ held accountable, ” but also in the broader sense of promoting responsibility and stewardship. i am particularly interested in designing incentives – both the carrot and the stick – that yield conduct aligned with the public purposes of banking. • the third panel will focus on skill development – particularly on recruiting and training as levers for sustained cultural change. • and the last panel will focus on leadership and industry collaboration. a prime element of leadership, within a firm and across the industry, is character – behavior anchored in values consistent with the public ’ s legitimate expectation of trustworthiness. our keynote speaker today is christine lagarde, the managing director of the international monetary fund. christine lagarde has been outspoken in her view that “ financial leaders [ must ] take values as seriously as valuation, culture as seriously as capital. ” 9 this makes abundant sense to me – culture and capital each promote financial stability. thank you for joining us. i am also grateful to stanley fischer, the vice chairman of the board of governors, who will speak with christine lagarde following her remarks. please join me in welcoming christine lagarde. christine lagarde, economic inclusion and financial integrity, address to the conference on inclusive capitalism, may 27, 2014. bis central bankers ’ speeches