New York Fed's Checki Says State-Controlled Reserve Funds May Pose Risks

(Bloomberg) -- National governments and central banks
may pose new risks to global financial markets as they seek
greater returns on their record holdings, said New York Federal
Reserve Executive Vice President Terrence Checki.

``The growing interest in earning better returns on reserve
assets may signal reduced caution going forward,'' Checki told a
conference in Athens today. ``Capital flows from the emerging
world could play an important new role in how future episodes of
stress in the financial system originate.''


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