In particular, the degree of complexity of some products that are designed for the purposes of re-packaging and selling debt instruments has become overwhelming.
Although I would be very hesitant to impose limitations on the creativity of market participants in their pursuit of innovation and enhanced efficiency of the financial markets, in my view, instruments and structures that cannot be fully understood even by those who bear the ultimate responsibility of the level of risk taken by financial institutions should not be acquired or set up by banks and investors who are lacking sufficient sophistication in the management of the risks.