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Furthermore, the use of symbolic models enables one to leverage techniques from supervisory control and algorithms from game theory for controller synthesis purposes.
One by one he ticks off things in need of regulatory reform: the mortgage business, where brokers operated with next to no oversight; the Basel II capital requirements, which allowed investment banks to greatly boost their leverage; and the supervisory framework that inadequately monitored systemic risk.
In such cases, authority by a relevant supervisory agency to limit their capital and leverage would be important, as the president has proposed.
All true, of course, with Citigroup — a bank that Mr. Geithner himself regulated — being Exhibit A. But the solution the document proposed is "a new, more robust supervisory regime for any firm whose combination of size, leverage, and interconnectedness could pose a threat to financial stability if it failed".
Supervisory responsibilities were too fragmented.
Trim your supervisory layers.
So, leverage.
It criticises Congress for its supervisory failures.
Leverage Q.
Gradually, governments assumed a supervisory role.
That process is more collaborative than supervisory.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com