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Prof. Viral Acharya on fire-sale risk in financial markets

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Excerpt from Bloomberg -- “'The Fed is right to worry about fire-sale risk,' Viral Acharya, a finance professor who focuses on liquidity risk and regulation at New York University’s Stern School of Business, said in a telephone interview on Feb. 25. Lehman and Bear Stearns showed the consequences when 'creditors in the repo market started worrying about these counterparties.'”

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Additional coverage appeared on Bloomberg Businessweek.