Fed’s Cook is concerned about non-banks and real estate prices
Hedge funds could rapidly pull out of Treasury cash futures market
Federal Reserve governor Lisa Cook said non-banks and real estate prices pose potential risks to financial stability, in a speech on November 6.
Speaking at Duke University’s economics department, Cook said non-banks and hedge funds in particular are highly leveraged, and she warned regulators must stay vigilant about the risks posed by their debt obligations.
Cook said non-banks like money market funds and open-ended funds may present liquidity risks similar to the bank runs earlier this year
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