NY Fed's Checki: Banks need 'extensive repairs'

September 2, 2008 9:13:10 AM PDT
A top banker at the New York Federal Reserve says "extensive repairs" are needed to overhaul the world banking system and overcome the current credit crisis. The New York Fed's executive vice president Terrence Checki says it will take "more time" and "more capital" for financial institutions to reduce their debts and regain strength.

Many of the world's biggest banks have written off more than US$500 billion in losses since the U.S. subprime mortgage crisis spread, eroding the value of a wide range of assets and drying up credit worldwide.

Checki also told a forum of economists in Buenos Aires Tuesday that policy makers must fight inflation, and can't wait for high food and energy prices to fall.