Threats to US Financial System Remain High, Regulators Say | Economic news






The Financial Stability Supervisory Board is chaired by Federal Reserve Chairman Jerome Powell, Treasury Secretary Janet Yellen (foreground) and heads of other regulators including the Securities and Exchange Commission, the Federal Deposit Insurance Corp. and the Office of the Currency Comptroller.


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MARTIN CRUTSINGER Associated Press

WASHINGTON – The nation’s top financial regulators told Congress on Friday that threats to U.S. financial stability remain high even as the country has recovered from what appear to be the worst economic shocks in the pandemic.

In its annual report on threats to the economy, the Financial Stability Supervisory Board first highlighted climate change as an emerging risk, citing among other things potential loan losses due to floods and forest fires. .

The Biden administration has made climate change a top priority, overturning the Trump administration’s decision to withdraw the United States from the Paris climate agreement.

The board is chaired by Federal Reserve Chairman Jerome Powell, Treasury Secretary Janet Yellen, and heads of other regulators including the Securities and Exchange Commission, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

The board was established by Congress in 2010 to address coordination gaps among financial regulators that were exposed by the 2008 financial crisis. The board is required to publish an annual report to Congress assessing the risks to the financial system.

Yellen, speaking before the panel approved the report on Friday, said the turmoil that enveloped financial markets after the COVID-19 hit in March 2020 had been dealt with swiftly by the Federal Reserve and other agencies . She said the response showed “the financial system is much more resilient to shocks” than it was during the 2008 crisis.


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Don F. Davis