This article explained the history and rationale of money market fund reform.
and Exchange Commission Chairman Mary Schapiro made the case for
sweeping money fund changes before the Senate banking committee
Thursday, warning that the industry was highly vulnerable to further
runs. Criticizing "the fiction of the stable NAV," Schapiro said that it
was a matter of time until a fund ran into serious trouble, potentially
causing a "contagion that spreads quickly" through the financial
sector. "The implications to our economy are very broad and very deep,"