Bank Experts Need Risk Management Advice from Government Bureaucrats

Federal Reserve System Governor Lael Brainard actually said that with a straight face [Wall Street Journal‘s paraphrase]:

…financial regulators should direct the nation’s biggest banks to take new steps to manage climate-related risks as part of a broader effort to monitor potential hazards posed to the financial system.

She said this (quoted by WSJ) at last week’s conference at the Federal Reserve Bank of Boston:

Ultimately, I anticipate it will be helpful to provide supervisory guidance for large banking institutions in their efforts to appropriately measure, monitor, and manage material climate-related risks.

Yeah. Because finance businessmen, bankers, whose businesses live or die on their abilities, are incapable of understanding the financial risks to their businesses without the…guidance…of government bureaucrat/regulators.

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