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U.S. regulatory panel will not find problems with risk modeling firms: BlackRock 

May 22, 2014
Sarah N. Lynch, Reuters

U.S. regulators' concerns about the market relying too heavily on the same risk models provided by a handful of financial firms will be "debunked," a top executive at asset manager BlackRock said on Monday.

There is no evidence to support concerns that the market may be overly dependent on the same models because there is a lot of competition, said Vice Chair Barbara Novick of BlackRock, which offers such models. Risk is not concentrated in just a handful of third party providers, added Novick, who spoke at a panel discussion.

"There are many of them. The fact there are many of them tells you there is choice, and people can migrate from one to another," she said at a conference convened by the Financial Stability Oversight Council to explore whether asset managers and their activities could pose risks.

"While it is worth looking at...I think in the long-term it will be debunked," Novick said at the conference held by the FSOC, chaired by U.S. Treasury Secretary Jack Lew tasked with policing the market for emerging threats.

Read more: Reuters

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