BIS: Mutual Funds Need New Buffers
Pressing the case for mutual-fund reform, senior BIS staff have concluded that poor liquidity-risk management – not investor redemptions alone — led to acute distress as shown by the fact that bond-fund asset sales exceeded redemptions except where funds have pre-existing, effective liquidity-risk management protocols.
FRB Ramps Up Climate-Risk, Scenario Analytical Capabilities
Continuing her focus on climate change, FRB Gov. Brainard today announced a significant increase in the central bank’s analytical and supervisory efforts. As will be detailed shortly in an in-depth analysis of Chairman Powell’s HFSC testimony today, the Fed thinks climate risk is well within its safety-and-soundness mandate, strongly rejecting GOP assertions to the contrary at a recent Senate Banking hearing.