Thursday, April 25, 2013

Bernanke 'Destabilizing Fire Sales'

Treasury Secretary Jack Lew just concluded a meeting of the Financial Stability Oversight Council where they discussed the systemic risks in 2013. In the 2013 report they just authorized they lay out seven things regulators are concerned about in terms of systemic risk. Main points were operational risks that can cause major disruptions to the financial system. More specifically, "wholesale funding markets remain vulnerable to runs that could in turn trigger destabilizing Fire Sales," said Federal Reserve Chairman Ben Bernanke.