Yellen Says Financial System May Need Additional Rules

Federal Reserve Chair Janet Yellen says recent initiatives by the Fed and other regulators to help banks make it through periods of financial stress are important, but they may still need to be strengthened.

Yellen believes current rules governing how much capital banks must hold in case of losses do not address all threats. She said that the Federal Reserve staff is actively considering what additional measures may be needed.

Bank regulators need to focus on this area, Yellen says, since bank runs generated at shaky firms were the primary engine that triggered the 2008 financial crisis.

Yellen’s comments Tuesday came in an address delivered by video to a financial markets conference sponsored by the Federal Reserve’s regional bank in Atlanta .

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza