I am delighted to have the opportunity to speak tosuch an eminent group at this important conference oncapital regulation.“If you see a banker jump out of the window,jump after him: there is sure to be profit in it,” said theeighteenth-century French philosopher Voltaire. Lookingat the...

This paper was the distinguished address at the conference "Financial services at the crossroads: capital regulation in the twenty-first century." The conference, held at the Federal Reserve Bank of New York on February 26-27, 1998, was designed to encourage a consensus between the public and...