Search results for moral hazard
Crypto
Kevin Warsh, Fed chair, says cryptocurrencies are not bailout target
U.S. Federal Reserve Chair Kevin Warsh said the central bank would not step in with bailouts even if the cryptocurrency industry falls into crisis. He made the remarks at a semiannual monetary policy hearing of the House Financial Services Committee. Warsh said the 2008 financial crisis bailouts fueled moral hazard and he does not want to repeat it, though he did not rule out action to limit extraordinary risks.
Crypto
Bithumb mispayment fallout spreads as XRP overtakes Ethereum
Fallout from a large-scale bitcoin mispayment at Bithumb is spreading, with some assets still unrecovered despite emergency recovery measures and some leaking externally. Financial authorities and parliament are signalling tougher regulation. The article also cites developments around Ripple and XRP, including Ripple Labs’ valuation and Brazil’s approval of a spot XRP ETF, and notes bitcoin-related policy and market commentary, risks around Ethereum, and shifting U.S. regulatory signals.
Finance
Special debt discharge expansion for vulnerable borrowers raises bank burden, moral hazard debate
South Korea\'s financial authorities are drawing attention after launching a special debt discharge scheme that significantly reduces repayment burdens. The cap for support to vulnerable borrowers such as basic livelihood recipients and severely disabled people rises to 50 million won from 15 million won if they repay diligently for a set period. While there is support for helping low-income borrowers restart, concerns are being raised about higher losses for financial firms and potential moral hazard.