CCP resolution plans ‘on the wrong path’, says Fed adviser

Bank framework has “contaminated” policy for CCPs, says Chicago Fed’s Steigerwald

wrong way
"I do think we are on the wrong path”: Federal Reserve Bank of Chicago's Robert Steigerwald

Attempts to make clearing houses stronger and avoid taxpayer-funded bailouts are “on the wrong path”, according to a US regulatory policy adviser, who blamed it on a lack of understanding. Clearing houses were given a greater role in defusing counterparty risks at the G20 meeting in Pittsburgh in 2009, where member countries agreed to mandate clearing for all standardised over-the-counter derivatives. Regulators are currently trying to draw up a resilience framework that will reduce the chan