The U.S. economy and financial system remain vulnerable to another asset bubble, and there is "significant risk" of one developing, John C. Williams, president and chief executive of the Federal Reserve Bank of San Francisco, said Friday.

Many "glaring weaknesses" were addressed by regulatory reform, Williams told the International Monetary Fund's annual research conference. "These reforms are vital," he added. "But I am not convinced they will be enough to forestall another major crisis."

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