Blinder Concerned About Systemic Problem With Banks

The transcript discusses the systemic importance of financial institutions like Credit Suisse, designated as globally significant due to their size and interactions with other entities. It highlights the need for vigilance against systemic problems, especially in Europe and Switzerland. The conversation touches on potential signals of financial trouble, such as electronic runs and contagion to other institutions, emphasizing the role of regulators in monitoring and responding to these issues.

Why is it important for bank regulators to monitor for contagion among globally systemic financial institutions?

What actions should be taken if signs of contagion in the financial system are observed?