Fed’s Plosser: rules needed to curb excessive risk

PRAGUE, March 23 (BestGrowthStock) – Better regulation is needed to
dissuade financial market actors from taking excessive risks
after a “too big to fail problem” undermined discipline, a
senior U.S. Federal Reserve official said on Tuesday.
In general comments on accountability, Philadelphia Federal
Reserve Bank President Charles Plosser said there ways to
discipline the market to prevent the taking of excessive risks.

“The too big to fail problem has essentially removed much of
that market discipline,” he told an economic conference in
Prague.

“We have to have ways of disciplining the actors in the
marketplace so that they don’t take excessive risks, and in many
cases the market can do that and do that quite effectively.”

“That means that I believe we do need better regulation. It
is not obvious to me that we need more regulation, but we need
to do it differently.”
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(Reporting by Jan Lopatka; writing by Michael Winfrey)

Fed’s Plosser: rules needed to curb excessive risk