Money Market Funds: Stable—Until They're Not

Securities and Exchange Commission Chairman Mary Schapiro testifies before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill. Photograph by Chip Somodevilla/Getty Images

Mary Schapiro, chairman of the Securities and Exchange Commission, lost her battle on Aug. 22 to change how money market funds are regulated. Such companies as Vanguard Group and Fidelity call the funds “one of the most conservative investment options offered” and say they “represent one of the safest types of mutual funds.” Schapiro terms the claim of stability utter “fiction.” In defeat, she called on other federal regulators to pick up where she left off.

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