Reuters – U.S. regulators should take steps soon to strengthen government oversight of money market funds and short-term bank funding markets so that the “shadow” banking system can be better policed, a top Federal Reserve official said on Wednesday [May 2].
Fed Governor Daniel Tarullo said that while regulators have taken many steps since the 2007-09 financial crisis to better regulate banks once considered “too big to fail,” less work has been done to make funding markets outside the traditional banking system less risky.
