Friday, Bank of England Deputy Governor for financial stability, Paul Tucker stressed the need for policy makers to be cautious while making regulatory changes in the global financial system.
It might well be a mistake to reach early conclusions on the truly big issues, Tucker said at the Turner Review Conference in London.
He noted that before this crisis is over, one could learn that which business models and risk management practices worked best and how effectively the current efforts to stabilize banking systems and stimulate nominal demand work to revive different economies.
We will then be in a better position to make judgments about just how much we need to constrain financial activity in the future in the interests of stability, Tucker said.
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