Banks' reliance on money funds may be destabilizing, study says

02/8/2013 | Wall Street Journal, The

The trend of banks relying on money markets as a source of funding could destabilize the financial system, according to a study by the Federal Reserve Bank of New York. Money funds have historically been susceptible to runs, which may result in liquidity drying up for banks at the worst possible moments, the study says.

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Wall Street Journal, The

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