Bloomberg is reporting that Goldman Sachs GS CEO, Lloyd Blankfein, believes using clearinghouses increase risks in an “extreme” crisis.
“I agree that clearinghouses make things less risky for the regular crisis, but in an extreme crisis that could affect the clearinghouse itself” and it's “dramatically more risky,” Blankfein said at a finance and regulation conference in Brussels today. “We have to make sure that something that we do to reduce the risk in a once-in-a-20-year storm doesn't increase the risk in a once-in-a-50-year storm.”
“Otherwise, the clearinghouse becomes the biggest systemic risk in the world,” he added.
…Yet another reminder that unintended consequences arise when the government steps its toes in the free-market.
For the full article, pleaseMarket News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in