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Fed Heeds Wall Street’s Warning on Where Next Crisis May Come From

Federal Reserve Board of Governors member Daniel Tarullo

Federal Reserve Board of Governors member Daniel Tarullo

Photographer: Alex Wong/Getty Images

JPMorgan Chase & Co. and BlackRock Inc. have argued for years that a key response to the last financial crisis could help fuel the next one. Global regulators are starting to heed their warnings.

At issue is the role of clearinghouses -- platforms that regulators turned to following the 2008 meltdown to shed more light on the $700 trillion swaps market. A pivotal goal was ensuring that losses at one bank don’t imperil a wide swath of companies, and the broader economy.