MW: NY Fed Dudley calls for more data on foreign banks
By Steve Goldstein
WASHINGTON (MarketWatch) -- The U.S. needs global balance-sheet information on foreign banks operating here, which would be preferable to "ringfencing," according to New York Fed President William Dudley. He said without the data it is difficult to make informed judgements about the adequacy of capital and liquidity buffers. Though compensation practices are improved, Dudley said there is more to be done to align incentives with financial stability objectives. Regulators may need to step in if industry bodies fail to agree to derivatives clearing and repo standards, he added. He said it's unlikely that over-the-counter derivatives trades will all be cleared by the end of 2012 and doubts whether the next set of industry recommendations to reduce risk in triparty repo market will be sufficient.
