Clearinghouses Pose Risk, Says Bernanke

Clearinghouses pose a risk to the financial system and require greater oversight, said Ben Bernanke, chairman of the Federal Reserve, reports Reuters.

Clearinghouses pose a risk to the financial system and require greater oversight, said Ben Bernanke, chairman of the Federal Reserve. He warned that the centralization of clearing and settlement activities in clearinghouses has concentrated “substantial financial and operational risk in a small number of organizations” and that “we must do all that we can to ensure their resilience.”

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