WASHINGTON, March 13 (Reuters) – The U.S. Treasury Department is studying the growth of sophisticated financial vehicles such as hedge funds and derivatives to see what risks they may pose to financial markets or institutions, a senior official said on Monday.
“We at Treasury, given the explosion in the type and use of derivatives, and institutions that use them, want to ensure that the magnitude of risk and exposure are properly measured,” Treasury Undersecretary Randal Quarles said in prepared remarks to the Institute of International Bankers.
