Peanut Gallery: No kidding…. And what about our debt problems? This is like a binge drinker lecturing a bunch of alcoholics on the evils of other peoples’ drinking.

U.S. money market funds “remain structurally vulnerable despite some constructive steps, such as improved liquidity requirements, taken since the recent financial crisis,” he will add.

“Were the situation in Europe to take a severe turn for the worse, the U.S. financial sector likely would have to contend not only with problems stemming from its direct European exposures, but also with an array of broader market movements, including declines in global equity prices, increased credit costs, and reduced availability of funding,” Bernanke will tell lawmakers.

EXCLUSIVE: Bernanke Says Risk of European Contagion Still a Concern | Fox Business.

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Federal Reserve Chairman Ben Bernanke will warn Congress Wednesday that possible “contagion” from the European debt crisis for U.S. banks and money market funds remains “a concern” for the Fed and other financial regulators despite firms’ recent steps to reduce their exposure to countries and institutions there, according to testimony obtained by the FOX Business Network.

In particular, U.S. money market funds, with 35% of their assets in European holdings as of February, “remain structurally vulnerable” to Europe’s debt problems, Bernanke will tell the House Oversight and Government Reform Committee. Continue reading “Bernanke Says Risk of European Contagion Still a Concern | Fox Business” →