The SEC Chairman's Crusade for Money-Fund Safety
The SEC chairman says new rules are needed to prevent runs. The industry disagrees
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Mary Schapiro may not be able to fix what she believes is wrong with money-market mutual funds, but she’s not going to leave the Securities and Exchange Commission without trying. The SEC chairman is convinced the $2.5 trillion U.S. money-fund industry is prone to investor runs and poses a threat to the stability of financial markets. At a Senate hearing on June 21, she said that since the 1970s fund companies have acted to help their money-market funds maintain their $1 share price on more than 300 occasions.