Technical Capabilities Necessary for Regulation of Systemic Financial Risk Summary of a Workshop (2010) / Chapter Skim
Currently Skimming:
3 Observations from the Workshop's Keynote Presentations
3 Observations from the Workshop's Keynote Presentations
Pages 14-16
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 14... ...
No one considers the latter event to have been systemic, even though it involved losses on the same scale as those of the current crisis. The difference is that people who invest in the stock market expect some downturns and were presumably aware of the risk prior to April 14, 2000.
|
From page 15... ...
_________________ SOURCE: Adapted, with permission, from Andrew Lo, Massachusetts Institute of Technology, presentation at the Workshop on Technical Capabilities Necessary for Regulation of Systemic Financial Risk, Washington, D.C., November 3, 2009. Myron Scholes of Stanford University gave a keynote presentation that discussed the costs of adjusting portfolios when conditions change.
|
From page 16... ...
Thus, long-term risk measures must reflect the way that risks are likely to change. Counterparty exposures are important systemic risks in the over-the-counter derivatives markets, and these can be managed by a combination of central clearing, collateral contracts, and improved transparency.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.