Gary Cohn Calls Clearinghouses a ‘New Systemic Problem’
- Ex-Goldman Sachs president raises issue at banking conference
- ‘It’s the things we can’t liquidate that scare me,’ he says
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President Donald Trump’s chief economic adviser Gary Cohn said he sees a major risk evolving in clearinghouses, platforms that regulators turned to for swaps following the 2008 financial-market crisis.
As “we get less transparency, we get less liquid assets in the clearinghouse, it does start to resonate to me to be a new systemic problem in the system,” Cohn, director of the White House’s National Economic Council, said at a banking conference in Washington on Sunday.