Fed paper looks at ways to detect risks

An early warning system to detect financial problems before they reach crisis proportions must allow policymakers to better pinpoint areas of excessive risk-taking, according to a new Federal Reserve paper released Monday.

Here's a start,

"A Cancer That Spread": Bring Derivatives Out of the Shadows, Former Fed Bank Examiner Says

"What we did know from the financial crisis is that credit default swaps were a cancer that spread throughout our economy and caused, in part, the credit crisis. So we need to put those on exchanges," says our guest Mark T. Williams, a former Fed examiner and author of a new book,

If we did that financials such as JPMorgan, Citi, as well as others wouldn't be able to post both impressive and unexpected trading results.

Source: finance.yahoo.com