If Congress does choose to provide a guarantee for mortgages, I would urge that the guarantee be explicit and transparent, done in a manner that protects taxpayers, and apply to securities not institutions.
Quarles emphasizes the need for transparency and taxpayer protection in mortgage guarantees.
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More from Ryan F. Quarles
Markets are always ahead of the regulators. Frankly, that is how it should be.
If there is a credit allocation decision to be made, that is a decision for Congress, to be debated by the public's representatives.
That is probably the highest priority item that we have, discussing ways to ensure that our systems are resilient.
It is not our intention. Indeed, it is the opposite of our intention, to affect the total loss-absorbing capacity of the largest firms.