Reuters writes "Ireland calls on EU and U.S. to align money market rules". It says, "The European Union and the United States should align their rules for money market funds to avoid European funds relocating across the Atlantic, a senior regulator in Ireland said on Wednesday. Unlike the United States, the EU is considering imposing a cash buffer on major money market funds as part of efforts to regulate the shadow banking industry, which deals in trillions of dollars in assets, but operates outside the mainstream banking sector. At a conference in Dublin, Patrick Brady, director of policy and risk at the Irish central bank, warned that a divergent approach could create more problems for European regulators." He was quoted by Reuters, "There should be sufficient alignment across the Atlantic so that there is no distortion in the location of money market funds; money market funds located in the U.S. or indeed in Cayman, can invest in European banks and, therefore, present as much of a systemic risk for Europe as money market funds located in Europe."
