Not exact matches
The
financial crisis was due, in large part, to
excessive leverage and
excessive investment in real estate assets.
«I expect that the evolution of the
financial system in response to global economic forces, technology, and, yes, regulation will result sooner or later in the all - too - familiar risks of
excessive optimism,
leverage, and maturity transformation reemerging in new ways that require policy responses.»
Most recently, though, on January 7, 2017, in a speech at the American Finance Association, you seemed to step out of that centrally casted character, almost coming across as an iron fist in a velvet glove: «The bottom line is that there has not been an
excessive buildup of
leverage, maturity transformation, or broadly unsustainable asset prices... Overall, I do not see
leveraged finance markets as posing undue
financial stability risks.
While the US residential mortgage market was the primary cause, we all know that its helpmate in sparking a global
financial crisis was
excessive leverage in the
financial system.
The report cites regulatory failures, lapses in corporate governance, and
excessive leverage as key factors contributing to the
financial crisis.