'Too big to fail' label threatens Asia fund markets

Applying a 'too big to fail' designation to major US fund groups would risk seriously affecting their operations in Asia, regulators have been warned. Such a move would hit Hong Kong particularly hard, with the city’s reliance on foreign aset managers making it vulnerable to systemic risk classifications coming from the US. However, the US body that determines which firms are too big to fail has pledged to boost transparency in its operations after criticism from lawmakers. Th…