and our fellow citizens. i do not want to revisit all of the sordid events that brought us to economic crisis in 2008 but, suffice it to say that, in the housing sector, we traveled a very low road that had nothing to do with looking out for the greater good. on the contrary, there were too many people in all of the functional component parts – mortgage brokers, loan originators, loan securitizers, subprime lenders, wall street investment bankers, and rating agencies – who were interested only in making their own fast profits and were indifferent to the consequences of their actions for homeowners and communities, much less the nation as a whole. this selfish free - for - all ultimately led to an economic slide the effects of which are still visible in the boarded - up houses and sheriffs ’ foreclosure notices posted all over america. we pulled back from the brink of depression only through a massive and unprecedented infusion of public dollars in the banking system, and in other systemically important firms, to prevent collapse. in other words, the public was forced into a position where it had to put a lot on the line to save the financial system from its own follies and from total ruin. and many were bitter about having to do so. now, it is time to pay back the american citizenry in full, and not just in the literal sense, but in the sense that there must be reciprocity and mutuality in our structuring of economic policy so that we do not travel this low road again. bluntly stated, the government reluctantly provided the taxpayer funds necessary to unfreeze the financial markets and get our financial institutions on their feet again, with the expectation that the benefits would be directly meaningful to those taxpayers in their households and communities. the financial institutions that have been bolstered directly and indirectly by government subsidy and aid must now seek to support those who have been buffeted and injured by the housing crisis. this must go beyond the corrective actions that need to be taken to rectify current deficiencies. it means that financial institutions need to understand the effects their actions will have on consumers and the country as a whole, and factor those considerations in to their business decisions. this is the high road – a moral and economic imperative that must be the driving purpose that unifies and animates our efforts. indeed, the high road demands that we become effective institutional innovators for positive

changes in our communities and for housing practices that promote community well - being. when we traveled the low road, the only question was : will this practice make me rich? taking the high road means we continually ask : do our financial and legal arrangements contribute to the public welfare and the common good? yes, our economy has started to rebound, but we need a strong housing market in order to ensure a complete, stable, and sustainable recovery. the meltdown in the housing sector set off our economic crisis, and the reconstruction of the housing sector will help bring it to a close. each of you has a role to play in this mission, and i urge you to embrace this challenge and to do your part to contribute to the economic rebuilding of our country. thank you. bis central bankers ’ speeches