As I keep saying, the money-mkt fund situation is absolutely scary. In terms of how crucial it is for funding the entire financial system coupled with how dysfunctional it actually is. Money-mkt funds are the running the largest aggregate liquidity risk position imaginable. Investors and regulators are either largely unaware or choose to condone the situation.
Volcker is 100% correct and the situation needs to change. In my view, money-mkt funds present one of the biggest systemic risks to the whole system.
