Business

Around the Region

Fidelity opposes ‘shadow’ term

Fidelity Investments urged European regulators to abandon the term “shadow banking” and said that its money market mutual funds should not be considered part of the so-called shadow banking system.

In a comment letter to the European Commission dated Friday, the Boston investment giant said that some of the entities being labeled as shadow banks are “neither in the shadows, nor banks, nor even bank-like.” The firm went on to say that money markets are “significantly more transparent than banks, and, therefore, hardly in the ‘shadows.’”

Advertisement

Fidelity has been speaking out on money market regulation in the United States and overseas, as regulators look to bolster oversight of large pools of money to prevent another global financial crisis. Fidelity is the one of the world’s largest managers of money market funds, and the biggest in the United States, with $415 billion in assets.

The European Commission’s Green Paper, on which Fidelity was commenting, suggests that money markets, mutual funds that use leverage, and insurance companies that guarantee credit products all are being analyzed as possibly part of the shadow banking system. Fidelity called the term “confusing and misleading.”

Beth Healy can be reached at bhealy@globe.com.
Loading comments...
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.