FSB May Tag Funds With Over $100 Billion “Too Big To Fail”

The Financial Stability Board (FSB) may label investment funds that manage over $100 billion in assets as too big to fail. FSB and International Organisation of Securities Commission (IOSCO) said in a consultation paper published last week that it is now compiling a list of asset managers whose distress or failure could cause a Lehman-style event. SIFI tag for $100 billion asset managers The consultation white paper published last week indicated asset managers with over $100 billion under management would be considered ‘systemically important financial institutions’. The FSB said in the consultation paper because of their size, complexity and systemic…