Free Trial

MNI BRIEF: US Mulls Regulation of Money-Market, Hedge Funds

The Biden administration is moving to make it easier to more closely regulate nonbank financial institutions such as hedge funds and money-market funds, Treasury Secretary Janet Yellen said, proposing a rollback of Trump-era procedures.

The Financial Stability Oversight Council, a group of top federal regulators, is proposing to change the way it designates nonbanks as systemically important, Yellen said. That label currently only applies to the nations’ largest banks and allows extra oversight from the Federal Reserve. “The existing guidance — issued in 2019 — created inappropriate hurdles as part of the designation process,” she said.

“We are proposing revisions to certain elements of the Council’s existing guidance that have made it difficult to use its nonbank designation authority,” Yellen said. Regulators voted unanimously for the new framework.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.