Tarullo Calls for ‘Hard’ Look at Short-Term Funding Markets

Federal Reserve Governor Daniel Tarullo said U.S. and international financial regulators need to take “a hard, comprehensive” look at risks in short-term funding markets.

“Non-deposit short-term funding remains significant,” Tarullo said in written testimony prepared for a hearing tomorrow by the Senate Banking Committee. “Analysis of the appropriate ways to address these vulnerabilities continues as a priority this year for the Federal Reserve.”

Tarullo, who is the Fed governor in charge of financial supervision and regulation, called for more transparency in short-term funding markets in his testimony and “additional measures” to reduce the risks posed by money market funds.

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