Excessive Risk-taking, Market Fragility Threaten Stability, Treasury Says

Excessive risk-taking, increasing market fragility and the migration of activity away from regulated banks are three threats to financial stability, the Treasury Department's Office of Financial Research said Tuesday. The statement was made in its annual report to Congress. "Since our 2013 report, several financial stability risks have increased. The three most important are excessive risktaking in some markets, vulnerabilities associated with declining market liquidity, and the migration of financial activities toward opaque and less resilient corners of the financial system," Office of Financial Research Director Richard Berner said in a statement.