Bloomberg -- The Treasury Department said money managers could pose threats to the U.S. financial system when reaching for higher returns, herding into popular asset classes or amplifying price movements with leverage.

Companies overseeing a combined $53 trillion in assets, led by fund giants BlackRock Inc. and Vanguard Group Inc., can contribute to asset price increases and magnify volatility during sudden shocks, a report by the Treasury said today. Gaps in data, particularly on investments managed for institutions, limited the study’s ability to identify additional risk.

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