SEC Pushes Through Proposal To Reform Money Market Funds

Law360, New York (June 5, 2013, 2:36 PM EDT) -- The U.S. Securities and Exchange Commission voted Wednesday to propose a rule that would subject the riskiest money market funds to stricter oversight, taking a key step toward reforming the $2.6 trillion industry after months of divisive internal debates.

The SEC’s five commissioners voted unanimously to propose a rule that aims to reduce the likelihood of a run on institutional prime money market funds like the one that occurred during the 2008 financial crisis. The collapse of Lehman Brothers Holdings Inc. caused the net asset value...
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