Money Market Industry, Regulators Mull Systemic Risk

Law360, Washington (May 10, 2011, 6:15 PM EDT) -- Financial regulators and money market insiders on Tuesday suggested ways to limit risk in the industry, including permitting floating net asset values, citing concerns that arose in the wake of a run on such funds during the 2008 economic crisis.

“This was always one of the known fault lines of the international financial system,” Bank of England Deputy Governor for Financial Stability Paul Tucker said.

The U.S. Securities and Exchange Commission-hosted roundtable discussion in Washington focused on the potential for money market funds to pose a...
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