Sentences with phrase «create systemic risk»

I agree that there is no good way to create a systemic risk regulator, because the Fed creates most of the systemic risk.

Stock Market Leverage: How much margin debt is too much, that it helps create systemic risk?

The new method would make it possible to create systemic risk profiles for markets and individual institutions, which could prove useful for financial regulators aiming to prevent future crises.

Of course this will create opportunity costs as banks might create systemic risk departments.

The below chart illustrates U.S. oil production (in gold) vs. FED's balance sheet (in blue), and how overproduction from accommodative monetary policy resulted in the sharp decline in oil prices, creating a systemic risk that was again transmitted from financial and commodity markets to the real economy (in job losses and slow growth in Texas and other oil producing states, as well as the decline in headline inflation, pushing the Federal Reserve further from the price stability objective):

Perhaps they should ask who creates systemic risk?

Back in 2009, Barclays Global's research department studied the growing leveraged E.T.F. market — before the flash crash — and concluded that the funds created systemic risk because they «amplify the market impact of all flows, irrespective of source.»

7) The Fed should regulate systemic risk, because it creates the systemic risk.

Not exact matches

Such an outcome could prove to be a classic unintended consequence: Morneau's reforms — meant to reduce or contain the accumulated risk created by precipitously over-leveraged homebuyers — may unwittingly increase the overall systemic risk in the economy by driving red - lined borrowers to the sort of uninsured subprime mortgages that have proliferated in the shadow banking sector.

Horner said Alberta has tried to address some of Ottawa's complaints about the current system by pitching its own proposal — one that would create a new national enforcement agency as well as a national systemic risk committee made up of all 13 regulators and chaired by the federal minister.

The IMF leader, Dominique Strauss - Kahn, overruled the staff and these Board members by creating a new «systemic risk» rule.

But to reward risk - taking artificially, and for too long, is to amplify the amount of systemic risk that is created.

Housing bubbles create tail risks, leading Bubb and Krishnamurthy to conclude that imposing greater housing risks on securitizers will be an ineffective and even counterproductive approach to reducing overall «systemic risk» during bubbles.

Indeed, whenever shortages develop, we might expect the nonbank financial system to create assets that appear safe but that could in certain circumstances pose systemic risks.

Last Thursday, the Office of Financial Research (OFR), part of the Federal boondoggle created under the Dodd - Frank financial reform legislation in 2010 to foster the illusion that the government was reining in risk on Wall Street, released a new study showing almost unfathomable levels of systemic and interconnected risk among the too - big - to - fail banks that cratered the U.S. financial system in 2008 and has left our economy still struggling to right itself.

Quick to say they found the root - cause of the crisis — a banking system thats massive financial leverage and global interconnectedness created profound systemic risks to our modern economy — they swiftly passed Dodd Frank, a comprehensive regulatory reform package dressed up as the antidote to our sick financial system.

As we wrote back in June about the systemic threat created by passive strategies: «If a key sector failure, a geopolitical crisis, or even an unknown, black box bias pulls an algorithmic risk trigger, will the herd run all at once?»

In the US, strict and costly regulations in the aftermath of the financial crisis were applied with a broad brush, to large financial institutions capable of creating systemic catastrophe and to community banks with risks tied only to the communities they faithfully serve.

RBS chief executive Stephen Hester told the Commons» Treasury committee reflected those of many in the City when he warned: «I believe that creating a ring - fence increases somewhat the systemic risk and decreases the ability of banks to withstand the risk and has significant costs.»

There's a second, big issue there too, which is that so much power is now going to be vested into this Bank of England super-quango to end all super-quangos that we might create a position where we have a governor who is a single point of systemic risk to the whole economy if he starts making the wrong decisions.»

By taxing the transactions that create greater risk of network failure, the tax, known as a Systemic Risk Tax (SRT), would essentially rewire the financial system into a more resilient frisk of network failure, the tax, known as a Systemic Risk Tax (SRT), would essentially rewire the financial system into a more resilient fRisk Tax (SRT), would essentially rewire the financial system into a more resilient form.

Can't raise rates because the banking system is on edge (and now the Fed informally cares for the systemic risk created by the investment banks).

Do you really know what it would take to create a macro-FDIC, big enough to deal with a large systemic risk crisis like this one?

It should be clear by now after the AIG debacle that credit default swaps create enormous systemic risks that no regulator or regulators can control.

A decade ago, citing such evidence, I noted that «megabanks being formed by growth and consolidation are increasingly complex entities that create the potential for unusually large systemic risks in the national and international economy should they fail.»

Let me put it another way: if the government wants to reduce systemic risk, let them create risk - based capital regulations for investment banks, and let them increase the capital requirements on loans to hedge funds and investment banks.

[1] This post identifies some systemic features of Canadian legal education that create the risk (and perhaps the reality) that law schools do not adequately serve the public interest.

This post identifies some systemic features of Canadian legal education that create the risk (and perhaps the reality) that law schools do not adequately serve the public interest.

Mr. Robinson has written cogently about the professionalism concern that insurer - owned personal injury firms create systemic conflicts risks.

«In the future, we will need to create a new team to work on the bitcoin protocol and help bitcoin become a multi-party system to avoid the systemic risk of core being the only team working on the protocol,» he wrote, adding:

The systemic inaccuracy creates latent risk within the lending system.

High on the list of things learned might be that Wall Street's participation in the instruments created by financial innovation can increase underwriting standards and lower systemic risk.