After all, the U.S. banking system had a long period of stability after World War II, based on a combination of deposit insurance, which eliminated the threat of bank runs, and strict regulation of bank balance sheets, including both limits on risky lending and limits on leverage, the extent to which banks were allowed to finance investments with borrowed funds.
Last week, the Bank's financial policy committee (FPC) laid out the first limits on the mortgage market in 30 years, to limit risky lending.
Increasing malpractice costs over the last two years have led doctors to order batteries of costly exams and limit risky procedures; many doctors decided to retire early.
But some employees and analysts now say the line has blurred, as politicians push the bank to rein in executive compensation, bolster lending and limit risky businesses.
It is, instead, the fact that the current system doesn't limit risky behavior by "shadow banks," institutions — like Lehman Brothers — that carry out banking functions, that are perfectly capable of creating a banking crisis, but, because they issue debt rather than taking deposits, face minimal oversight.
The 48-year-old head of the Swiss National Bank, who played a high-profile role in formulation of new global standards designed to limit risky behavior by bankers, was by turns contrite and angry during the one-hour appearance, which was broadcast on the Internet.
BOSTON — The Massachusetts Democratic Party said Thursday that it had made Freedom of Information Act requests to six government agencies in hopes of learning whether Senator Scott P. Brown had helped JPMorgan Chase seek a loophole in a law meant to limit risky trading.
Also, if your state does not have a nighttime driving restriction, consider going beyond state laws and set household rules to limit risky nighttime driving.
Identifying contributing factors could limit risky decisions associated with tattooing.
Politicians are considering regulations like limiting risky investments and introducing safety net measures to support ailing pension funds.
