Bloomberg writes "JPMorgan's Staley Call Money Funds a 'Systemic Risk', saying, "James 'Jes' Staley, head of JPMorgan Chase & Co.'s investment unit, said the $4 trillion money-market fund industry is the 'greatest systemic risk' to the financial system that hasn't been adequately addressed." Bloomberg quotes him from Davos, Switzerland, "`What keeps me up at night most of anything we do at JPMorgan Asset Management is the money-market fund space. One of the things that has to come out and get a lot more attention and discussion is how do we take the systemic risk posed by money funds out of the system?" Bloomberg quotes Vanguard's David Glocke, "I'm aware there are those who want to blame the money-market industry for taking away the punch bowl. But issuers need to maintain diverse sources of funding." The article also quotes Peter Crane, "It would split the fund business, in effect: half into bank deposits and half into ultra-short bond funds." It says, "Crane predicted the industry would fight the proposal 'tooth and nail' and has the influence to win." Crane adds, "It's too big and important for such a dramatic change to be made."
