(Also published in BIS Review no 65, 17 July 2001). BIS Review 67/2001  3  equity insurance which were put in place prior to the 1987 equity correction, and (more recently) the increasing use of VaRs (value-at-risk models) and various risk management procedures which will tend to ensure correlation of changes of opinion (the herd changes direction simultaneously) and of mistakes.
*  *  *  The views expressed by the author are his own and do not necessarily reflect those of the Federal Reserve System, its governors, officers or representatives. Introduction We are approaching the one-year anniversary of the Dodd-Frank Act.