Funds With $100 Billion May Be Too Big to Fail, FSB Says

[xchrom]

http://www.bloomberg.com/news/2014-01-08/funds-with-100-billion-may-be-too-big-to-fail-fsb-says.html

Investment funds that manage more than $100 billion in assets may be labeled too big to fail, global regulators said, as they seek to expand financial safeguards beyond banks and insurers.

Hedge funds with trading activities exceeding a set value of $400 billion to $600 billion would also be assessed by national authorities to gauge whether they need extra rules because their collapse could spark a crisis, the Financial Stability Board said in a statement yesterday.

The report addresses “the risks to global financial stability and economic stability posed by the disorderly failure of financial institutions other than banks and insurers,” Mark Carney, Bank of England governor and FSB chairman, said in the statement. “They are integral to solving the problem of financial institutions that are too big to fail.”

The FSB, which brings together regulators and central bankers from the Group of 20 nations, is ranking banks and insurers by their potential to cause a global meltdown and demanding bigger financial cushions to avert a repeat of the 2008 credit freeze. Industrial & Commercial Bank of China Ltd., the world’s most profitable lender, was added to the FSB’s list of too-big-to-fail banks in November. Insurers such as American International Group Inc. and Allianz SE were deemed systemically important in July.

[Rex]

1. Okay fine, but I don't want to hear the leaders of industry prattle on about capitalism

and free enterprise when they don't practice or believe in it anymore. So 100 billion is the cap on immunity of corporate malfeasance, how wonderful!

[xchrom]

2. +1

[Buns_of_Fire]

3. So, the same people who allowed these parasites to screw everyone over are going to assess

whether or not said parasites need new rules? Sounds like a winning strategy to me!

[hughee99]

4. See, they're planning ahead.

The next time the bankers fuck it all up, they'll quickly know who needs the bailout and how much.