1. One of the central goals of Basel III is to strengthen bank liquidity. Has the Federal Reserve Board’s decision to include AOCI in the calculation of regulatory capital for larger banks advanced this goal? Do you think extending this requirement to smaller banks would improve liquidity in the banking sector? 

2. Banks had expressed concern that including AOCI in the calculation of regulatory capital would increase the volatility of regulatory capital. How have those concerns played out over the past five years?