The American financial system is "much safer and stronger" ed it is “unlikely” that in our lifetime there will be another crisis after the one of 2008-2009. Federal Reserve Governor Janet Yellen said so. Speaking from London, UK, the first female head of the US central bank explained that major US banks are sound and able to deal with shocks, as shown by the results of the first round of stress tests in 2017 (released last week). The second round will arrive tomorrow, the one with which the Fed will evaluate the banks' plans regarding the distribution of dividends and the buyback of treasury shares.
According to Yellen, the Fed is doing "much more" to observe risks to stability. In this context, the US central bank is also looking at areas that are not subject to supervision to identify any threats. The approach therefore is different from the pre-crisis one, when the supervisors of the financial system were comfortable, convinced that the CEOs could manage the risks, and central bankers were not worried.
