Boston Fed Chief Pushes For Added Money Market Reforms

Law360, Washington (April 11, 2012, 7:40 PM EDT) -- Although prime money market funds have undergone extensive reform in the past few years, much more is needed to prevent future financial crises, Federal Reserve Bank of Boston President Eric Rosengren said Wednesday.

Rosengren advocated major reforms for the funds, which are assumed to be low-risk for investors, at the Federal Reserve Bank of Atlanta's 2012 Financial Markets Conference, saying that the funds often pool together higher-risk and troubled investments like credit default swaps, which undermine their stability.

To ameliorate the added risks, the funds often...
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