boutons_deux
08-23-2012, 10:19 AM
Changes to Money Market Funds Stall
Attempts to make sweeping changes to a popular type of mutual fund that played a central role in the 2008 financial crisis have been derailed.
The chairwoman of the Securities and Exchange Commission, Mary L. Schapiro, wanted to bring her vision for regulating money market mutual funds to a vote as early as next week. But Ms. Schapiro acknowledged on Wednesday evening that three of the five commissioners opposed her plan and said she was calling off the vote.
While opposition was certain from the two Republican members of the commission, the crucial swing vote, a Democratic commissioner, Luis A. Aguilar, said in an interview on Wednesday afternoon that he would feel comfortable voting only after significant further study of the industry.
Ms. Schapiro wanted the $2.6 trillion money market fund sector to start holding cash reserves or to let their share prices fluctuate, instead of promising to pay investors $1 for every $1 they put in, among other changes.
After being informed of Mr. Aguilar's comments, Ms. Schapiro said on Wednesday evening that she had given up trying to sway her colleagues. Her decision is at least a short-term victory for the financial industry, which has sunk millions of dollars into lobbying against her plan.
"It's a tragedy that serious thoughtful proposals to shore up a major weakness in the financial system and protect American taxpayers from the potential need to bail out this industry can't even receive public comment and debate," Ms. Schapiro said in an interview.
Until the financial crisis, money market funds were considered a dull, low-return corner of the markets. But now, most of the nation's top financial regulators view the sector as one of the most vulnerable parts of the American financial system.
http://mobile.nytimes.com/article?a=963412&f=19
"needs more study!"
iow, I'm stalling-to-death/lying my ass off as paid to do by the Banksters. :lol
Attempts to make sweeping changes to a popular type of mutual fund that played a central role in the 2008 financial crisis have been derailed.
The chairwoman of the Securities and Exchange Commission, Mary L. Schapiro, wanted to bring her vision for regulating money market mutual funds to a vote as early as next week. But Ms. Schapiro acknowledged on Wednesday evening that three of the five commissioners opposed her plan and said she was calling off the vote.
While opposition was certain from the two Republican members of the commission, the crucial swing vote, a Democratic commissioner, Luis A. Aguilar, said in an interview on Wednesday afternoon that he would feel comfortable voting only after significant further study of the industry.
Ms. Schapiro wanted the $2.6 trillion money market fund sector to start holding cash reserves or to let their share prices fluctuate, instead of promising to pay investors $1 for every $1 they put in, among other changes.
After being informed of Mr. Aguilar's comments, Ms. Schapiro said on Wednesday evening that she had given up trying to sway her colleagues. Her decision is at least a short-term victory for the financial industry, which has sunk millions of dollars into lobbying against her plan.
"It's a tragedy that serious thoughtful proposals to shore up a major weakness in the financial system and protect American taxpayers from the potential need to bail out this industry can't even receive public comment and debate," Ms. Schapiro said in an interview.
Until the financial crisis, money market funds were considered a dull, low-return corner of the markets. But now, most of the nation's top financial regulators view the sector as one of the most vulnerable parts of the American financial system.
http://mobile.nytimes.com/article?a=963412&f=19
"needs more study!"
iow, I'm stalling-to-death/lying my ass off as paid to do by the Banksters. :lol