United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Crisis Management Arrangements
IMF Staff Country Reports, May 14, 2010
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- United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Crisis Management Arrangements
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Bibliographic details
- Published: May 14, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206605.002
Summary
- This paper presents a technical note on Crisis Management Arrangements for the United States.
- The crisis has seen widespread systemic instability, large-scale fiscal support, and an increase in moral hazard.
- The lack of a formal systematic process for the assessment of risks may have contributed to a slow response to identified risks.
- Additional complexity of coordinating interagency actions in response to identified risks did not help.
- Power to act remained with the individual agencies, and coordinating a response to identified risks could take time.
Major themes and findings
- Systemic instability:
- Widespread systemic instability during the crisis is identified as a core concern.
- Fiscal response:
- Large-scale fiscal support was a prominent feature of the crisis response.
- Moral hazard:
- The crisis environment was associated with an increase in moral hazard.
- Risk assessment and coordination:
- Absence of a formal systematic risk-assessment process may have slowed responses to identified risks.
- Interagency coordination complexity impeded timely collective action.
- Authority to act remained with individual agencies, leading to potential delays when coordinated responses were required.
Content in this bundle
- Executive Summary