Financial Stability Forum

Progress in addressing concerns raised by HLIs

The Financial Stability Forum (FSF) has published a report by Howard Davies, Chairman of the UK FSA and Chairman of an earlier FSF Working Group, on progress in implementing recommendation endorsed by the FSF last year to address concerns about Highly Leveraged Institutions (HLIs).The recommendations addressed the systemic risks raised by the near collapse of Long-Term Capital Management (LTCM) in the autumn of 1998, and the concerns triggered buy the operations of HLIs in the financial markets of emerging market economies.