Late-2000s Financial Crisis Latest News: Pace of Consumer Borrowing Climbs, a Sign of Confidence

The Federal Reserve said Americans spent $19.6 billion more using credit in May than in April, the largest rise since May 2012. Hedge fund investors were recently borrowing aggressively to fund stock bets relative to their strategies since the financial crisis, a Federal Reserve survey showed on Monday. The Fed's Senior Credit Officer Survey showed one in five respondents reported hedge fund client's leverage, a measure of the amount of debt used to make financial bets, was near its highest level for equity-oriented funds since a pre-crisis peak. Strengthening regulation of financial markets is necessary to reduce risks, ECB policymaker Christian Noyer said on Saturday, in a speech entitled "The end of the dictatorship of finance". Noyer, who has in the past turned up the heat on London's role as Europe's finance hub, criticized accounting rules which he said fuelled "short-termism" and said the opaque nature of some parts of the markets had fuelled the financial crisis.
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