Warning for Biden Team from Trump Regulators
(CNN Business) New York - As they head out the door, Trump-led financial regulators are warning the incoming Biden team that a little-known yet critical corner of Wall Street is broken.
Their concern centers on the short-term funding market, which provides money to businesses, local governments and market players. When this market breaks down, the entire economy can screech to a halt.
That's what happened during the 2008 financial crisis -- and the pandemic caused it to collapse again.
Alarmingly, the short-term funding market imploded late last year and then again in March when the pandemic erupted -- forcing the Federal Reserve to come to the rescue by pledging hundreds of billions of dollars of support.
"Recent events, including the financial fallout from the pandemic, have confirmed that potentially significant structural vulnerabilities remain" in short-term funding markets, the Trump-led Financial Stability Oversight Council (FSOC) warned late last week in..READ MORE
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