To the Editor:

Where is the banks' ownership of the reserves? In "Reserve Releases Increasingly 'Ridiculous'," you state in correct terms the conflict among all the parties on reserving for loan losses. But, isn't it the banks' responsibility?

Your subtle point is, "Who is running the banks?" Why do the bank regulators, FASB, or SEC know better than the banks themselves what should be reserved?

Kurt Weise
Central Bank

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