Investment funds that manage more than $100 billion in assets may be labeled too big to fail, global regulators said, as they seek to expand financial safeguards beyond banks and insurers.
As part of an effort to restore trust in the scandal-hit Euribor interest rate, regulators said the number of maturities that make up the benchmark for trillions of euros of lending should be cut from 15 to seven.
Banks deemed to be too-big-to-fail should hold more capital reserves to protect against operational risks, such as rogue traders, regulatory fines and fraudulent employees, the Financial Stability Board said.
