By beginning of January, 2010, Thomas Griesa, a New York judge, had frozen the Argentine central bank’s account held at the Federal Reserve Bank of New York, following claims of investors that the central bank was no longer an autonomous agency but under the thumb of the country’s executive branch.
Indeed, these efforts might eventually lead to new supervisory regimes for addressing credit risk. Better methods of quantifying credit risk have significant potential for reducing the time examiners spend in on-site examinations. Moreover, advances in credit risk measurement may ultimately allow supervisors to design regulatory capital standards around internal models.