NY Fed Staff Report: Money Market Funds Intermediation, Bank Instability, and Contagion

In a staff report published by the Federal Reserve Bank of New York, authors Marco Cipriani, Antoine Martin, and Bruno M. Parigi assert that, while the practice of banks raising money by borrowing from money market funds has some benefits, it can also lead to bank failures, and thus be a source of systemic instability.

Click here to view report in full (links externally to NY Fed website).