Money market funds appear to have gained a high-ranking enemy within. Speaking yesterday at a Levy Economics Institute conference, Pimco managing director Paul McCulley (who runs Pimco's money market fund) called on the government to further regulate money market funds, transforming them into quasi banks.

"It [a money market fund] is a bank and it has absolutely no capital," McCulley said, according to Reuters.

McCulley runs Pimco's own money fund, and he is known for popularizing phrases like "shadow banking system" and "irrationally exuberant." 

Edited by: Neil Anderson, Managing Editor


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