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GOVERNOR MISHKIN DELIVERS REMARKS AT THE FEDERAL RESERVE BANK OF NEW YORK, AS RELEASED BY THE FEDERAL RESERVE
JANUARY 11, 2008
SPEAKER: FEDERAL...
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UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT August Term, 2003
(Argued: September 29, 2003 Decided: October 3, 2003)
Docket No. 03-6195
RA...
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The stability of the financial system and the potential for systemic events to alter its functioning have long been critical issues for central bankers and researchers. Recent events suggest that older models of systemic shocks in the financial system may no longer fully capture the possible channels of propagation and feedback arising from major disturbances. Fresh thinking on systemic risk is therefore required. With that goal in mind, in May 2006 the National Academy of Sciences and the Federal Reserve Bank of New York convened a conference in New York to promote a better understanding of systemic risk. The sessions brought together a broad group of scientists, engineers, economists, and financial market practitioners to engage in a cross-disciplinary examination of systemic risk tha...
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FED VICE CHAIRMAN KOHN DELIVERS REMARKS AT THE FEDERAL RESERVE BANK OF NEW YORK AND COLUMBIA BUSINESS SCHOOL CONFERENCE ON THE ROLE OF MON...
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The two papers in a conference session on systemic issues in the federal funds market are discussed. The first paper, by Adam Ashcraft of the Federal Reserve Bank of New York and Darrell Duffie of Stanford University, explored whether trading frictions in the fed funds market affect the reallocation of excess reserves to banks requiring funds to complete their payments. The paper found that fed funds trading is driven partially by individual banks' precautionary targeting of balances, and that this targeting contributes to systemic stability. The second paper, by Morten Bech of the New York Fed, Walter Beyeler and Robert Glass of Sandia National Laboratories, and Kimmo Soramaki of the European Central Bank, analyzed the network structure of interbank payments and developed a model for a...
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The Federal Reserve Bank of New York now owns a 7,780-square- foot stone mansion here, to go along with its other troubled Oklahoma asset, the struggling Crossroads Mall.
Crossroads Mall and the mansion are both part of a portfolio of toxic assets swallowed up by the Federal Reserve Bank of New York as part of the 2008 Bear Stearns bailout.
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Yoon Hi Greene (Argued), Federal Reserve Bank of New York, New York, Shari Leventhal, Federal Reserve Bank of New York, New York, for Appellee.
Befor...
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An important channel through which largely unregulated hedge funds interact with regulated institutions is prime brokerage relationships. Central to these relationships is the extension of credit to hedge funds, which exposes banks to counterparty credit risk. Counterparty credit risk management (CCRM) practices, used to assess credit risk and limit counterparty exposure, are banks' first line of defense against market disruptions with potential systemic consequences. Hedge funds' unrestricted trading strategies, liberal use of leverage, opacity to outsiders, and convex compensation structure make CCRM more difficult, as they exacerbate potential market failures. While past market failures suggest that CCRM is not perfect, it remains the best initial safeguard against systemic risk; thu...
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NEW YORK -- MF Global Holdings Ltd. (NYSE: MF), a broker-dealer providing trading and hedging solutions, today announced that it has been designated a...