FROM THE OFFICE OF PUBLIC AFFAIRS

In the last several years, due to technology, a favorable legal structure under the Fair Credit Reporting Act, and innovation in the financial services industry, America has offered a wider variety of credit products, to more people, at lower costs than ever before in our history, and we do it better than anywhere else in the world.  Millions of Americans derive great benefits from that, to build a home, start a business, finance an education, buy a car, and meet the every day needs of every day life.

They derive these benefits, that is, if they handle their credit wisely.  When they do not, this great blessing of available credit can become a nagging curse that can break up a home, bankrupt a business, destroy the dream of an education, lead to repossession of the car, and make it a struggle to meet the everyday needs of everyday life.

Financial distress is no more in the interests of America’s financial institutions than it is in the interests of her people.  Fortunately, there are prudent rules or principles that if followed can help keep the wolves of financial distress away from the door.

Today we have invited people from many walks of life to meet together here to discuss what those basic principles of credit management are and how we can help spread the word.  We hope to see these principles applied more widely so that the benefits of ready credit can be enjoyed more widely.  Many have been engaged in this effort, at many levels, and from many venues.  There is a lot of wisdom gathered here today, and we propose to make good use of it.

We are especially grateful for the leadership role taken by the Federal Reserve in promoting wise credit management, along with other vitally important elements of financial education.  And we are particularly grateful for the presence of Governor Gramlich this morning, who knows as much about educating people in the wise ways of basic, sound economics as anyone I know.

We thank each of you for your participation, for what you have done to help educate people about wise credit management, and for what we can all do together to extend this effort even more.