Central bank group: Crisis fixes still needed
An organization representing the world's central banks says risky behavior by big banks once again poses a hazard to the global economy.
The Bank for International Settlements says in its annual report Sunday that banks considered too big to fail still have an interest in risky trading because they can expect taxpayers to cover big losses.
The report says that fact is "moving the financial sector toward the same high-risk profile it had before the crisis" that started in 2007.
The report comes amid renewed questions about big global banks. Rating agency Moody's Investors Service recently downgraded the credit rating of 15 big banks, while J.P. Morgan reported losing $2 billion on a hedging strategy.
The BIS is an intergovernmental organization of central banks in Basel, Switzerland.
AP
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