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Central bank bosses enlist for war game to gauge threat of Lehman-style bust

about 9 hours ago
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The bosses of the central banks and treasuries of the UK, US and EU are to take part in a war game in Washington on Saturday to test how they would handle the collapse of a globally significant bank.Amid growing unease over the risks to global financial stability, the most senior officials from the US Federal Reserve, the European Central Bank and the Bank of England – including its governor, Andrew Bailey – are expected to take part.In a so-called “desktop” stress test, behind closed doors in the US capital, the exercise will include the authorities wargaming how they would respond to another Lehman Brothers-style collapse.It comes as banking regulators from around the world sound the alarm over the growing risks to financial stability from AI, risky private credit lending, and potential disruption in markets linked to the US-Israel war on Iran.Finance ministers, executives and regulators discussed the potential risks as they gathered in Washington for the International Monetary Fund and World Bank spring meetings this week, including warning that the latest AI models from US tech companies could pose serious threats to financial stability.

It comes amid fears over the capabilities of the US tech company Anthropic’s Mythos AI model, which experts warned last week posed an unprecedented risk because of its ability to expose flaws in IT systems.Bailey, who also chairs the Financial Stability Board of global regulators, said such risks could threaten banks.“It is a very serious challenge for all of us.It reminds us how fast the AI world moves,” he said.It is expected that the senior officials from the US, UK and EU will stay on in Washington after the end of the IMF meetings for the wargaming exercise, which is to be held at the offices of the Federal Deposit Insurance Commission (FDIC) – the organisation that guarantees US bank deposits.

The FDIC, which called the event a “trilateral principal level exercise,” said the meeting would be used to coordinate how multiple regulators would respond to the collapse of a global bank.It did not disclose the details of its stress-test, or if it included an assessment of cyber risks.“These exercises enhance understanding of each jurisdiction’s resolution regime for global systemically important banks (G-SIBs), strengthen coordination on cross-border resolution, and promote confidence in and commitment to the orderly resolution of G-SIBs,” the FDIC said in a statement.Since the collapse of Lehman Brothers in the 2008 financial crisis, such stress-testing exercises have become commonplace among regulators, with the aim to prevent a repeat of a major bank failure.The weekend after the IMF meetings is also often used because central bank chiefs and finance ministers are already gathered together, affording them a rare opportunity to run a face-to-face exercise involving the bosses of each institution.

societySee all
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Tell us: have you ever been concerned about the behaviour of a child you know?

Has a child you know displayed behaviour or done things that have made you consider going to the authorities?We would like to speak to people who have faced this very difficult dilemma.Why did you to consider this course of action? How did you deal with the situation? Did you go to the authorities or decide against? What was the outcome? How did you cope? Perhaps you were able to work through the problems with support. Tell us.Your can get in touch with us confidentially by using the form below. We will not use your submission without contacting you first

2 days ago
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New regulator powers could stifle advocacy, UK’s largest civil society bodies warn

Several leading civil society organisations have urged the government to consult the sector before introducing new powers for the Charity Commission, which they caution risks “suppressing legitimate advocacy” at a time when civic space is under increased pressure.Signatories, including leaders from some of the UK’s largest civil society bodies, alongside faith-based and community organisations, wrote to the culture secretary, Lisa Nandy, saying the proposed social cohesion measures could lead to the “suppression of lawful advocacy, campaigning and community engagement”.The letter, which was signed by leaders from the National Council for Voluntary Organisations, the Muslim Charities Forum, Quakers in Britain and Oxfam, among others, cautions against a government proposal to introduce broader grounds on which organisations could be reported for extremism.“In the absence of clear safeguards and well-defined thresholds, the proposed expansion of the Charity Commission’s powers to remove trustees and close organisations, could be applied in ways that mischaracterise legitimate civil society activity,” the letter said.“This, in turn, may contribute to the suppression of lawful advocacy, campaigning, and community engagement, particularly for organisations working on sensitive or contested issues, including those led by or representing diverse communities

2 days ago
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Future of the NHS, saviour of the high street? High hopes for health hub in a Barnsley shopping centre

It is a revolution that might just save the NHS – and the high street. Imagine being able to have your eyes tested, mole examined or get an appointment with a consultant without going to your local hospital – and maybe fit in some shopping or a cinema visit afterwards.That, increasingly, is what people in Barnsley are doing after an unprecedented relocation of medical services from the district general hospital into a purpose-built outpatients centre in the Alhambra shopping centre, which is getting a new lease of life thanks to the experiment.Those involved say the initiative – the first of its kind in the NHS – is trailblazing and revolutionary. After a recent visit, Wes Streeting, the health secretary, described it as “really inspiring”

3 days ago
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Effect of ‘gamechanger’ Alzheimer’s drugs ‘trivial’, review concludes

Drugs that have been hailed as a gamechanger for the treatment of Alzheimer’s disease make no noticeable difference to patients, according to an extensive review.The analysis of clinical trials in people with mild cognitive impairment or mild dementia found that the effects of anti-amyloid drugs on cognition and dementia severity over 18 months were “trivial”, with improvements in functional ability “small at best”.The verdict is a blow to the new wave of drugs that are designed to slow Alzheimer’s by clearing clumps of amyloid protein that build up in the brain. Amyloid plaques are a hallmark of Alzheimer’s disease, along with another protein called tau which forms toxic tangles in neurons.The Cochrane review drew on gold standard methods to assess data from published clinical trials, but was criticised by some researchers and charities for combining results from older, failed drugs with those from newer, more effective medicines

3 days ago
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People in north of England twice as likely to be killed in accidents as Londoners, report finds

People in the north of England are twice as likely to be killed in accidents than Londoners, with accidental deaths clearly linked to deprivation, a report has found.The research, from safety charity the Royal Society for the Prevention of Accidents (RoSPA), highlights vast regional differences in accidental deaths, which have also seen an overall increase.The north-east is the most dangerous region for accidents in England, with a death rate of 44 per 100,000 people, compared to an average of 32 across the country, with the north-west in second place with a death rate of 38 per 100,000 people.Scotland was the most dangerous of the devolved UK nations, with an even higher accidental death rate of 51 per 100,000, while Wales equalled the north-east of England, and Northern Ireland’s rate of 39 per 100,000 was also above the England average.Meanwhile, London was the safest place to live in the UK, with an average of 19

3 days ago
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Why we washed our hands of Izal | Brief letters

In the 1970s, to save money, a London psychiatric hospital replaced soft toilet tissue with Izal medicated toilet roll (Letters, 13 April). Therapists conducting successful sessions for outpatients with compulsive disorders were surprised by a sudden increase in relapse rates, until they realised that each sheet contained the exhortation “Now wash your hands”. Its use was discontinued. ‌Prof David C SandersMortain, France Izal toilet paper made excellent tracing paper, but it also made a superb sound in a comb and paper. One member of a jokey interval band at the original Concorde Jazz Club in Southampton played an Izal bumphone to great effect!David WittMalmesbury, Wiltshire It’s not all doom and gloom when products are discontinued

3 days ago
sportSee all
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Baumgardner shines after New Zealand’s Daniels seizes unified crown in jarring upset

about 10 hours ago
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Supercharged GOAT-level swim‑genius Adam Ramsay-Peaty is the Messi of breaststroke | Barney Ronay

about 11 hours ago
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Alycia Baumgardner beats Bo Mi Re Shin to retain unified junior lightweight title – as it happened

about 13 hours ago
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Gout Gout waves off rivals to claim 100m national junior title in style

about 13 hours ago
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Lancashire to put matches behind paywall; Rew sparkles for Somerset on rain-hit day – as it happened

about 20 hours ago
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O’Sullivan and Trump no-shows spoil mood before World Snooker Championship

about 24 hours ago