Fed's Dudley, in Remarks on Systemic Risk, Doesn't Address Policy

Friday, 04 Oct 2013 10:02 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
New York Federal Reserve President William Dudley said on Friday that more needs to be done to reduce risks in collateralized short-term funding markets, but made no reference to the U.S. economy or monetary policy in his prepared remarks.

Speaking at the start of a New York Fed conference on "'Fire Sales' as a Driver of Systemic Risk in Tri-Party Repo and Other Secured Funding Markets," Dudley said regulators will have to step up to address risks if the industry cannot do so.

In a paper earlier this year, Fed researchers said regulators had "limited" tools to stop investors from rapidly selling assets should a dealer default.

The overnight repurchase, or repo, market, where investors borrow short-term cash using securities as collateral, came under severe stress after Lehman Brothers failed in 2008 and investors liquidated holdings. That prompted the Fed to launch emergency lending facilities.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved