The Financial Stability Oversight Council, or FSOC, has issued its annual report.  Part of the report focuses on Potential emerging threats to U.S. financial stability.  According to the report:

  • The euro area poses an obvious risk
  • Dissolution of the euro would come at a great cost
  • A systematic crisis in Europe would represent a significant risk for US financial institutions
  • Risks could arise from uncertainty about the vigor of global growth outside Europe

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