SEC Money-Fund Talks Included Idea to End Outflows in Crisis
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U.S. Securities and Exchange Commission Chairman Mary Schapiro, who said she couldn’t get fellow commissioners to agree to tighten money-market fund rules, rejected an alternative that would give funds authority to halt or limit withdrawals in times of crisis, according to a person with direct knowledge of the discussions.
Schapiro said in a statement yesterday that she canceled a vote on her plan to give funds the choice of switching to a floating share price or establishing a capital buffer with redemption restrictions. She said three of the five commissioners told her they wouldn’t support the idea.