[Weekly Compilation of Presidential Documents Volume 35, Number 17 (Monday, May 3, 1999)]
[Page 763]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on the Report of the Working Group on Financial Markets

April 29, 1999

    As part of our ongoing efforts to increase opportunities and reduce 
risks in the global economy, we have focused on ways to strengthen the 
world's financial system. Today I welcome the Working Group on Financial 
Markets' report entitled ``Hedge Funds, Leverage, and the Lessons of 
Long-Term Capital Management.''
    The report contains a number of policy recommendations that are 
designed to reduce the potential risks of excessive leverage, as 
demonstrated by the near-collapse of long-term capital management. By 
enhancing transparency in the financial system, by increasing the amount 
of information made available to the public, and by improving risk 
management on the part of financial institutions, we can help reduce 
these risks. Taken together, the report's recommendations are an 
important step in our efforts to promote more secure financial markets. 
This report is the result of a collective effort by all of the Federal 
financial regulatory agencies. I want to commend the Working Group for 
this thoughtful report. I look forward to working with Congress on these 
important issues.