SEC Chairman Abandons Money Market Reform

Law360, New York (August 23, 2012, 11:56 AM EDT) -- U.S. Securities and Exchange Commission Chairman Mary Schapiro on Thursday dropped her controversial bid to tighten regulation of the $2.6 trillion money market industry after the majority of her fellow commissioners said they opposed her proposal.

Schapiro abandoned her plan reluctantly, saying other regulators should act quickly to prevent a repeat of September 2008, when a massive run on money-market mutual funds worsened the credit crisis. But with three of the five SEC commissioners now against the proposal, Schapiro said there was no point in continuing...
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