Fed's Williams says Europe presents global threat

Mon Jun 11, 2012 1:47pm EDT

John Williams, president of the Federal Reserve Bank of San Francisco, takes part in a panel discussion titled ''U.S. Overview: Is the Recovery Sustainable'' at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012. REUTERS/Danny Moloshok

John Williams, president of the Federal Reserve Bank of San Francisco, takes part in a panel discussion titled ''U.S. Overview: Is the Recovery Sustainable'' at the Milken Institute Global Conference in Beverly Hills, California May 1, 2012.

Credit: Reuters/Danny Moloshok

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(Reuters) - The European debt crisis poses a "significant" threat to financial stability and could undermine progress made in recent years to strengthen the global financial system, a top Federal Reserve official said on Monday.

"While the global financial system is stronger than it was three years ago, it remains vulnerable," San Francisco Fed President John Williams said in remarks prepared for delivery at a conference on Asian banking sponsored by his regional Fed bank.

"The European sovereign debt crisis threatens banks in that continent, and, by extension, elsewhere," he said in his opening remarks. "Clearly, it represents a significant threat to financial stability."

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama)

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Comments (2)
kopasetic wrote:
Oh please!!! The financial cliff that the US is on the edge of has nothing to do with global financial stability ? The inability of the US Congress to jointly agree on a fiscal health plan has no bearing on the global economy ? Whatever he’s smokin’ must be good !

Jun 11, 2012 2:47pm EDT  --  Report as abuse
mulholland wrote:
Any nation such as the PIIGS or the USA that lacks the integrity to repay thirty years of accumulated Keynesian stimulus debt is a threat to the world economic system. Likewise any individual such as Ben Bernanke who devalues the world reserve currency is a threat to our economic system. Likewise any institution such as the partial reserve banks that do not operate with the required ten percent reserve capital is a threat to the economic system.

Jun 11, 2012 3:40pm EDT  --  Report as abuse
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