A crucial part of Wall Street still keeps federal regulators up at night. But Janet L. Yellen, the chairwoman of the Federal Reserve, said on Tuesday that the Fed was actively considering measures to strengthen that potential weak spot.
Ms. Yellen said that despite an onslaught of new bank regulations, risks remained in the markets where Wall Street firms and other entities lend and borrow hundreds of billions of dollars for short periods. The 2008 financial crisis showed that these gigantic markets were particularly susceptible to panic. With that in mind, Ms. Yellen suggested some measures on Tuesday that could restrain the use of short-term borrowing at the largest banks — including requiring them to hold more capital.
“There might be room for stronger capital and liquidity standards for large banks than have been adopted so far,” Ms. Yellen said in a prerecorded speech to the Federal Reserve Bank of Atlanta’s Financial Markets Conference.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015