The optimal outcome remains a shared perspective across the Atlantic on reducing the risk of runs in this sector and we must do everything we can to ensure that we can continue to move towards that goal. What action should Europe take now?
Market conditions in European Prime MMFs which are earning negative yields may pre-empt the conclusions of the FSB and other policy decisionmakers. As you know, some promoters are contemplating new structures where investors earn negative returns. We should see how this plays out and in particular the investor response to the structures that the promoters offer.