Are asset managers really 'too big to fail'?

Are asset managers really 'too big to fail'?

As regulators propose fund groups should be subject to greater scrutiny, Hardeep Tawakley analyses the risks the largest asset managers and funds pose to the wider market.

The question of which institutions are 'too big to fail' has become one of the most important ones facing the financial services industry today.   Following the financial crisis, regulators quickly began monitoring global banking giants, but it is only over the past 18 months their attention has turned to the systemic risk asset management firms could pose to the wider economy.  This month, the International Monetary Fund (IMF) became the latest body to add its voice to the discussion. In its Global Financial Stability report, the IMF said concerns about the risks posed by the asse...