Especially if the distressed institution is large or prominent, the panic can spread to other banks, with potentially debilitating consequences for the economy as a whole.
With this in mind, allow me to briefly walk you through today’s topics, and highlight a few key takeaways that deserve further consideration and elaboration, both within the regulatory community and the financial services industry. Today’s conference focused on two broader topics covered in separate sessions: First, extending central clearing and second, climate change risks in financial markets.