. the great depression – a combination of recession, deflation and bank failures – is a clear historical example of what can happen if central banks fail to provide liquidity to the financial system. the monetary policy measures taken by the ecb have helped to avoid a collapse in money and credit and to eliminate the spectre of the great depression. they have not only avoided a collapse of the financial system, but also, and more importantly, prevented a surge in unemployment and poverty in the euro area. in so doing, we have proven that the three objectives of stability, efficiency and equity are mutually supportive, and that the ecb can effectively contribute to containing inequalities within its treaty mandate. i thank you for your attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

nontraditional mortgages, particularly the " payment shock " if the loan's interest rate increases, or when the consumer is required to make fully amortizing payments. it is important for consumers to have the information necessary to understand the features and risks of these types of mortgages. as bankers create more complex products, they should pay particular attention to improving the quality of their disclosures and sales practices, so that consumers can clearly understand the features of those products. the federal reserve is committed to improving the information consumers receive about these products, including improving the disclosures required under the u. s. truth in lending act. as we work to improve the understanding of disclosure information to consumers, the federal reserve also engages in outreach activities and conducts research to help us better understand consumer behavior and inform our judgment with regard to the best approaches to achieve consumer understanding. to this end, we sponsor consumer surveys, hold public hearings, discuss issues with our consumer advisory council, and conduct consumer focus groups and other types of consumer testing. conclusion the topics i have focused on this morning, portfolio concentration risk in cre, improved risk sensitivity of basel ii, enterprise wide compliance of bsa / aml and clear communication to consumers about complex products, emphasize that risk management needs to be integrated into daily operations of banks. as an organization chooses to accept more risk exposure to implement its strategies, it is imperative that the organization strengthen its risk management practices appropriately. a bank should clearly understand the implications of the risks it chooses to accept, ensure that the risk mitigants it has chosen work effectively, and that capital is strong enough to support the bank throughout an extended period of unexpected losses. i would also like to note that the federal reserve has an excellent working relationship with the financial services authority and the bank of england. we have worked together effectively on bankspecific issues and broader questions of regulatory policy and financial stability. while there is a wide range of issues with which supervisors must grapple, including those i have discussed today, i believe that supervisory cooperation can indeed create a safe and sound global marketplace while allowing financial institutions to remain prosperous.