Liquidity pressures could return, says FSF report

Money-market tensions could yet re-emerge, a group of leading central bankers and policymakers warned on Monday.

In an interim report outlining proposals for a regulatory response to the recent turmoil, the Financial Stability Forum (FSF), which is attached to the Bank for International Settlements, said: "There remains a risk that further shocks may lead to a recurrence of the acute liquidity pressures experienced last year."

"It is likely that we face a prolonged adjustment, which could be d