Charles Goodhart, Paul Mortimer-Lee, Lucrezia Reichlin and Gabriel Stein concur that dangers are greater from exiting too early than too late but warn that asset prices risk becoming over inflated
Central banks should insure bank assets against systemic crises to avoid another financial panic, according to a proposal presented at the Federal Reserve's Jackson Hole symposium last week.
Despite news of an impending auction of more than $1 billion of warrants on JP Morgan by the US Treasury, it remains unclear how any such auction would work.
The UK Treasury may issue bonds exchangeable into shares of Royal Bank of Scotland and Lloyds TSB, according to the asset manager responsible for the government's stakes in the two banks.
The US Treasury should expand its bank holding company stress-testing programme to include smaller firms, the Congressional Oversight Panel said on August 11.
The US Treasury has recruited at least one major bank to assist it with auctioning off warrants outstanding under the Troubled Assets Relief Program (Tarp), sources close to the situation told Risk .
At Risk Europe 2009 in Frankfurt, an ECB board member discusses the role of central banks, when markets and monetary policy combine.
Governments need to plan how they will halt rescue measures introduced during the financial crisis, and ought to pull out as soon as conditions allow, according to the Bank for International Settlements (BIS).
The Bank of England (BoE) will expand its asset purchase facility, or ‘quantitative easing’, by £50 billion to £175 billion, it said today.