Monday, June 18, 2012

Money Market Fund reform

This article explained the history and rationale of money market fund reform.

Securities 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," she added.

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