Financial Interconnectedness a Bigger Risk Than Bank Size
Posted on May 07, 2010 at 08:28 AM EDT
NERA Economic Consulting argues that the interconnectedness of financial firms is a more important influence on systemic risk than is the size of the firms. A new paper details the negative consequences associated with a failure to consider varying levels of interconnectedness across financial firms in regulatory reform efforts, such as increased job losses and [...]