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'The urgently needed reform is degenerating into farce.'
Texas pension fund backtracks on pledge not to hire 'firms convicted of felonies.'
Decline reflects pullback by money-market funds amid low rates.
Shift in financing for middle-market companies still leaves banks at risk.
Rates recent ascent may foreshadow a Fed hike later this year.
Banks needed agency's permission to keep businesses running after pleas on FX rigging charges.
