. As lender of last resort, the central bank is given enormous power which is normally tempered by a variety of limits. In … the most recent crises in both the United States and euro area, the Federal Reserve and European Central Bank (ECB) have …

primary responsibility for risk management must rest with firms, not with government supervisors. Unfortunately, systemic risk … concerns have led governments to shield the private sector from the full losses that dull their incentive to discipline risk …