Agencies Update Procedural Standards
Late yesterday, the Federal Reserve and other banking agencies released proposed changes to their administrative procedures allowing greater use of electronic communications and implementing numerous other modernizations. The Board also released its own rules governing FRB proceedings at the holding company level.
Fed Study Slams MMF Structural Risk
The Federal Reserve has released a new staff paper confirming global and U.S. conclusions regarding continuing MMF risk. The U.S. is now actively advancing rules via the Securities and Exchange Commission to contain these risks (see FSM Report MMF19), but this study of the $9 trillion global sector concludes without reference to these rules that MMFs, especially prime funds, should be brought fully under the rules (e.g., floating valuation) governing all investment funds or those for bank deposits.