Bank of England Deputy Governor Paul Tucker has told Parliament's Treasury Select Committee that clearinghouses could present risk to the financial system if they are not properly regulated. Tucker says clearers have become "too important to fail" because of regulatory changes. "The banks became too big to fail by accident, central counterparties have almost been mandated by the [Group of 20] leaders to be too important to fail," Tucker said. "We need to make sure these institutions are sound and well regulated and could recover in distress."
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