US banks’ strategic similarities pose risks – NY Fed official
“Supervisors should be dynamic and continue to evolve as the supervised firms do,” Kevin Stiroh says
The evolution of US financial firms towards greater similarity in underlying business models and strategies creates a fundamental challenge for supervisors, Kevin Stiroh, executive vice-president of the Federal Bank of New York, said in a recent speech.
Stiroh warned homogeneity of US financial firms could lead to them becoming “systemic as a herd”, where shocks could lead to correlated responses and large-scale disruption.
In his remarks on November 1, Stiroh said several factors, including
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