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MNI POLICY: U.S. Treasury Panel Mulls Funding Market Reforms

WASHINGTON (MNI)

Short-term funding markets still have "potentially significant" vulnerabilities, a U.S. regulatory panel reported Thursday, warning that new safeguards may be needed.

The Financial Stability Oversight Council, led by the Treasury Department, said threats remain in nonfinancial business leverage, short-term wholesale funding markets, cybersecurity, and nonbank mortgages.

The panel recommends regulators review vulnerabilities including the risk of large-scale redemptions in money-market mutual funds, and any role leveraged nonbank entities may have played in March's repo market stresses.

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

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