WASHINGTON - The Chairman of the House Banking Committee asked the Federal Reserve Board on Friday to investigate whether the derivatives activities and mutual funds pose a risk to the banking system.
Rep. Henry Gonzalez, D-Tex., made the request to Fed chairman Alan Greenspan after derivatives losses triggered the collapse of a money market fund earlier this week.
Gonzalez asked the Fed to provide details of any banks that paid money to cover fund derivatives losses and the regulatory actions taken in each case.
