Since banks would be less exposed to their national governments, financialsectorstability would be less endangered if a national government has financial problems.
The real potential fallout for banks is the pressure the publicity puts on Congress and regulators to pass a real financial regulation bill that will mean something for financialsectorstability and investor protection in the future.
The IMF also published an update to its Global FinancialStability Report said that risks to financialstability in the banking sector had increased in the second quarter of this year because of the continued slow global recovery and fears about the quality of bank assets in Europe.
Mr Hoban, in a statement to the Commons on 12 December 2011, pledged the coalition government would ensure there was a system of regulation that secured financialstability while protecting competitiveness, stating the financialsector would continue to be a critical part of the economy and recovery.
The Federal Reserve will continue to work with the Congress, other regulators, and the private sector to explore this and other strategies to increase financialstability.