"Fraudulent retail banking practices may not in and of themselves pose systemic risk, but they surely indicate mismanagement that could be catastrophic in riskier and more complex divisions of a bank holding company," she said.
Dodd-Frank also creates a new insolvency system for banks that pose systemic risk to manage the inevitable failure.
China's conservative regulators may well clamp down if the upstarts become big enough to pose systemic risks.
"Do you believe that the collapse of large hedge funds pose systemic risk?" he began.
Conflicts involving Russia, China, India, Pakistan, Iran, Egypt, Saudi Arabia, Nigeria, and Mexico could pose systemic and large-scale disruption to "the global order and to American interests".
Lehmans was allowed to fail, we were told at the time, because its failure did not pose systemic risk.
"As we have seen with A.I.G., distress at large, interconnected, nondepository financial institutions can pose systemic risks just as the distress at banks can," Mr. Geithner told lawmakers.
They all agreed with Mr. Waxman, and with the other Congressional questioners, that in certain cases hedge funds could indeed pose systemic risk.
One needs an orderly process for dealing with those that are insolvent, particularly if they pose systemic risk.
The association of FM and autoimmune disease, specifically systemic lupus erythematosus, may pose diagnostic dilemmas.
