Hedge funds, low-income borrowers and municipalities face steeper costs from global rules enacted after the financial crisis as banks stand to benefit, said JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon.
The unprecedented amount of cash the Federal Reserve has pumped into the financial system is proving more powerful for money-market rates than Chair Janet Yellen’s signals she will start turning off the spigot.
GAM Holding AG, the Swiss money manager that split from Julius Baer Group Ltd., reported a more than doubling in full-year profit, proposed a higher dividend and said it’s planning a new share buyback program.
Arthur Levitt, former Securities and Exchange Commission chairman, says an S.E.C. proposal on money market funds "would only make matters worse." Levitt talks with Bloomberg's Tom Keene on Bloomberg Radio's "Bloomberg Surveillance."
More than half of Europe’s money market funds by assets have closed because securities they invest in pay negative returns after the European Central Bank cut interest rates, according to Standard & Poor’s.
The six largest U.S. money market funds have eliminated their lending to Italian and Spanish banks, reduced investments in French banks and are favoring Swiss securities for their $511 billion of assets.
Money-market mutual funds would be forced to create capital buffers equaling 1 percent to 3 percent of assets to protect against losses under a plan now favored by staff at the U.S. Securities and Exchange Commission, according to three people briefed on the regulator’s deliberations.