Tag Archives: Money Market

The SEC Punts (Again) on Financial Stability Reform — The Harvard Law School Forum on Corporate Governance

And on it goes!!!!!!!    Small business of-interest, need-to-know and news-to-watch.  Should we blame a lobbyist for an interest group or blame allowing too much leeway to lobbying groups to control based on power but not neccessarily the best interests of the public?

Excerpt:  In an all-too-familiar pattern, the SEC has backed down in the face of industry pressure and dropped a key proposal to prevent a repetition of the 2008 financial crisis. Despite valiant efforts by Chair Mary Shapiro, a divided Commission has rejected further steps toward reform of money market funds, a $3 trillion dollar financial intermediary that was at ground zero of the financial crisis and that now presents a continuing threat to financial system stability.

A powerful industry group, mutual funds and some of their clients, have persuaded three SEC Commissioners to ignore the near implosion of the money market fund sector in 2008. Here are their names, for now is an accountability moment: Luis A. Aguilar, Daniel M. Gallagher, and Troy A. Parades.

Read full article via The SEC Punts (Again) on Financial Stability Reform — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

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Money Market Fund Reform — The Harvard Law School Forum on Corporate Governance

Small business need-to-know and opinion of-interest.  Ruling on the money market industries business as usual.

Excerpt:  Three Commissioners, constituting a majority of the Commission, have informed me that they will not support a staff proposal to reform the structure of money market funds. The proposed structural reforms were intended to reduce their susceptibility to runs, protect retail investors and lessen the need for future taxpayer bailouts.

I — together with many other regulators and commentators from both political parties and various political philosophies — consider the structural reform of money markets one of the pieces of unfinished business from the financial crisis.

Read full article via Money Market Fund Reform — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

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