Global Regulators Try Again to Eliminate Money-Market Hazards
- FSB seeks to head off more disruptions in short-term funding
- Fed vice chair has made this a priority in his final year
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The Financial Stability Board released a 63-page report Wednesday advising an overhaul of regulations for money-market funds, aiming to fix flaws exposed by early-pandemic turmoil that froze vital financial markets.
The funds should penalize investors trying to grab money quickly in a crisis, according to the report. The FSB, in a set of proposals made to financial regulators worldwide, also suggested barring investors from yanking all their money out.