How Banks Should Manage Risk

They can't do it alone. What's needed is a regulator who can pull data firm-by-firm to better grasp systemwide exposure and identify hot spots
Mario Tama/Getty Images

Marking the one-year anniversary of the collapse of Lehman Brothers' , President Barack Obama urged Wall Street to mend its ways. "Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them," he said in a speech in New York on Sept. 14. Part of his ambitious plan to overhaul the financial system is a new Financial Oversight Council to identify emerging systemwide risk issues and improve coordination among agencies such as the Federal Reserve Board, the Securities & Exchange Commission, and the Federal Deposit Insurance Corp.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.