Molly Scott Cato hits out at new EU rules on sensitive money market funds

The European Parliament’s Economic and Monetary Affairs committee has voted on draft new EU rules on sensitive money market funds, commonly known as ‘shadow banks’. The Greens hit out at the vote, arguing that these funds should face the same level of rigorous regulation as conventional banks. After the vote, Green MEP Molly Scott Cato, who is a member of the committee said:

“The city and financial lobby have got what they wanted, which is to continue to operate money market funds without meaningful regulation. This vote is a serious setback to efforts to improve the stability of the financial system, especially as these funds helped cause the financial crisis. Yet despite this, key members of the Committee from the Socialist group – to which Labour are a part – and the ECR group – to which the Tories belong – have bowed to intense industry lobbying and have effectively voted for weak legislation that could lead to another financial crisis.”

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