Sunday, October 15, 2017

Jeanna Smialek — Gary Cohn Calls Clearinghouses 'a New Systemic Problem'

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....
“It’s the things we can’t liquidate that scare me,” Cohn said.

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