ECB president underlines three risks to financial stability

Recent developments and indicators suggest that the main scenario for eurozone financial stability remains favourable going forward, but should not encourage complacency, said Jean-Claude Trichet, president of the European Central Bank, at a speech delivered to the International Monetary Conference Central Bankers panel in Frankfurt.

He highlighted three issues that may pose risks to the financial system: hedge funds, private equity-sponsored buy-out activity, and the markets for credit risk

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