European Commission launches shadow banking onslaught
The European Commission today unveiled plans to clamp down on money market funds (MMFs) as it looks to rein in the shadow banking system.
New regulation could see MMFs based or sold in Europe forced to stockpile liquid assets, while funds that promise to pay investors a fixed share price may have to establish a capital buffer equivalent to 3% of their assets.
The proposed requirements are rooted in the commission's concern over the funds' susceptibility to runs, and the systemic risk that a fund
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