Federal Reserve has called for the use of market discipline to enhance the work of bank regulators.

"As banking organizations become more complex, we are going to need all the help we can get, especially if we wish to avoid killing the goose that laid the golden egg through more intrusive supervision," said Federal Reserve Board Vice Chairman Roger W. Ferguson Jr. He spoke Thursday in New York, at a meeting sponsored by the Bond Market Association. A copy of the text was released here.

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