Once-Safe U.S. Money Funds Face Uncertain Future: One Year Later
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U.S. money market mutual funds, haunted by the 2008 collapse of a single fund and the ensuing panic, are wrestling with regulators over ways to safeguard the $2.65 trillion business without killing it.
The Securities and Exchange Commission enacted a raft of new rules in 2010, and the industry next faces a review by the Financial Stability Oversight Council, a body created by last year’s Dodd-Frank Act. The council is expected to decide this year or early next whether to call for restrictions that fund-company executives say would destroy their product.