(Bloomberg) -- Federal Reserve Governor Daniel Tarullo said asset managers could pose potential risks in a future crisis if they are forced into fire sales, and said new regulations might be warranted to promote stability.

“Under some circumstances, a fund might respond by rapidly selling assets, with resulting contagion effects on other holders of similar assets,” Tarullo said today in a speech in Arlington, Virginia. Regulators also should consider further addressing “the risks associated with short-term wholesale funding,” he said.

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