Should these institutions be bailed out? Several big US banks have recently created a “super conduit” worth $ 75 billion, trying to help alleviate the crisis. But in so doing, how it is going to price the risk of related products? Will this simply create even greater moral hazard?
BIS Review 148/2007  5  Above all, we need to pay close attention to and deeply think about the turbulence underway as well as the remedial measures adopted by the financial regulatory authorities in the mature economies to deal with it. Such a reflection bears great significance for China to develop its financial market, improve financial supervision and regulation and macroeconomic policy-making.