BoE's Tucker: Where are the risks?

In a speech given on 23 June Paul Tucker of the Bank of England noted that in one form or another risks crystallise every day. He asks whether today's capital markets are well placed to absorb any nasty shocks.

In particular, he offers some views on the debate about recent innovations in derivative markets. He argues that they have helped to disperse risks around and beyond the banking system, and that they have "plausibly taken us a further step towards complete markets...providing a richer

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