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Mr. Buffett is famously wary of investing in complex financial firms.
Nor does market discipline have a way to deal with the systemic risks created by financial intermediation in modern complex financial firms.
"We pay special attention to developments at the largest, most complex financial firms," Bernanke said.
Instead of relying on the approach advocated by the Obama administration, which was largely adopted by both the House and Senate, Plosser repeated his call for a new bankruptcy-like process to resolve large, complex financial firms on the verge of failure.
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Basically over time we have encouraged, through regulation or the lack thereof, the creation of large, complex, interconnected financial firms.
"A bank supervisor, which focuses on looking at credit files, is not prepared to look at the wide range of activities of a complex international financial firm," he said, arguing that the Fed's expertise in monetary policy, payment systems and macroeconomics equipped it to guard against systemic risk.
This authority was designed to unwind complex and interconnected financial firms that could threaten the financial system if they failed.
Unlike Power6 servers, Power7 machines can do the sort of fast-paced transaction processing needed by financial firms, complex analytics from simultaneous data sources or perform high "throughput" computing, including crunching the data-intensive models used in simulations like genomics or weather prediction.
There were huge differences in detail: shadow banking American style tended to involve prestigious Wall Street firms and complex financial instruments, while the Chinese version tends to run through underground banks and even pawnshops.
US authorities embarked upon a damage limitation exercise yesterday by sanctioning emergency Sunday trading in the Wall Street firm's most complex financial positions.
Such a system largely relies on the interconnectedness of various financial entities such as banks, firms, and investors through complex financial relationships such as interbank payment networks, investment relations, or supply chains.
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