Newsletter February 2013: Regulators press on with repo and money fund reform

NEW YORK – William Dudley, president of the New York Federal Reserve Bank, made it very clear to bankers recently that regulators are determined to see through further reforms in the wholesale funding markets and the shadow banking sector. Although much has been done over the past few years to mitigate the structural flaws that make wholesale funding a point of weakness in the global financial system, some important issues and vulnerabilities remain, he told a New York banking audience in early February. Despite the “worthwhile steps taken thus far, we have not come close to fixing all the institutional flaws in our wholesale funding markets.”