SEC’s Schapiro Says Money Funds’ Makeup Makes Them Run-Prone
This article is for subscribers only.
Money market fund regulations need to be revamped quickly to fix the funds’ inherent vulnerability to runs, said U.S. Securities and Exchange Commission Chairman Mary Schapiro.
“I do feel a sense of urgency about the structural weaknesses that exist in money market funds,” Schapiro said today at a Washington breakfast with reporters sponsored by the Christian Science Monitor. The SEC has been working on two possibilities to change aspects of the $2.6 trillion money funds industry that make them “prone to runs,” she said, with the agency considering either a departure from the traditional $1 share price or mandating capital cushions.