March’s market bailout demands regulatory payback

Regulators will propose changes to money-market funds next year after pandemic lockdowns in March highlighted how the $6.9 trillion sector struggled under severe stress, the Financial Stability Board said on Nov. 17.

The FSB, which coordinates financial rules for the Group of 20 major economies, said in a report to G20 leaders that the turmoil in markets in spring had exposed vulnerabilities throughout the financial sector. But further investigation is warranted into money-market and open-ended funds, into how derivatives clearing houses vary margin or cash calls to cover trading positions, and into the structure of bond markets, the FSB said.

“It’s clear we need to take action to address these issues,” Randal Quarles, chair of the FSB and vice chair of the U.S. Federal Reserve, told reporters. Without central banks doling out liquidity to maintain stability, sectors such as money-market funds would probably have fared far worse in the “dash for cash”, the FSB said.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Breakingviews - March’s market bailout demands regulatory paybackAfter the panic comes the bailout. And after the bailout comes the reckoning. In 2008, governments rescued banks and then embarked on a decade-long overhaul to ensure they would never need to do so again. This year’s pandemic-induced meltdown in financial markets, which...
Источник: Breakingviews - 🏆 470. / 51 Прочитайте больше »

Searching for the next buyers of this bull market with inflows surging and the consensus longCorporations, money markets and systemic hedge funds could be possible next sources of demand for stocks. Big investment ops during a global Pandemic for companies who have all their products and services online, nothing for firms whose products involve walk-in or in-person anything, very bad.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »