Bloomberg writes "Money-Market Funds May Face Regulation in EU Shadow Bank Plan". The article says, "The European Commission will call for legislation on money-market mutual funds and securities lending agreements as part of a push to regulate so-called shadow banking. Michel Barnier, the EU's financial services chief, intends to propose a plan on shadow banking in the spring, Stefaan De Rynck, a spokesman for Barnier, said in an e-mail." De Rynck tells Bloomberg, "The overall objective is to make sure that our new regulations do not result in pushing activities to the world of shadow banking. To reach this goal, we will no doubt come forward with new legal initiatives in the next year on issues such as money market funds and securities lending." The piece adds, "The FSB, which brings together central bankers, regulators and finance ministry officials from the Group of 20 nations, has said that it will publish draft recommendations for regulating shadow banks, with a final version to come by September 2013. Barnier's proposals must be approved by governments and by the European Parliament before they can take effect."
