Fed: Examining Risk Key to Stemming Next Crisis
A new paper from Federal Reserve says an early warning system to detect financial problems before they reach crisis proportions must allow policymakers to better pinpoint areas of excessive risk-taking.
The staff paper says more up-to-date statistics - both at the level of individual companies and products as well as the big-picture, industrywide information - are needed.
The paper says Policymakers' analysis of the information should focus on recurring themes associated with financial instability such as excessive risk-taking by investors.
Fed Governor Donald Kohn and two staffers wrote the paper to be presented at a conference this week in Frankfurt, Germany.
© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The staff paper says more up-to-date statistics - both at the level of individual companies and products as well as the big-picture, industrywide information - are needed.
The paper says Policymakers' analysis of the information should focus on recurring themes associated with financial instability such as excessive risk-taking by investors.
Fed Governor Donald Kohn and two staffers wrote the paper to be presented at a conference this week in Frankfurt, Germany.
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Right, because the Fed has "proven" time and time again how adept they are at recognizing "Risk" (NOT!)