To Save Money-Market Mutual Funds, Scrap Them
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June 14 (Bloomberg) -- Long-overdue rules to prevent arepeat of the 2008 run on money-market mutual funds may not bepassed this year, thanks to a provision just inserted in afunding bill before Congress by Representative Jo Ann Emerson,Republican of Missouri.
This is unfortunate but unsurprising. Because real reformsjeopardize the very existence of money-market funds, oppositionfrom the industry has been fierce. There is a way out, however:Pairing such reforms with a creative alternative to the currentmodel could make the demise of money funds palatable even totheir sponsors.