Lawmakers Urge SEC Chief To Drop Strict Money Market Regs

Law360, New York (May 1, 2012, 8:26 PM EDT) -- Lawmakers on Tuesday stepped up the pressure for the head of the U.S. Securities and Exchange Commission to back off her proposal to tighten regulations in the money market fund industry, saying they could deter investors and reduce demand.

Thirty-three members of Congress signed a letter to SEC Chairwoman Mary Schapiro urging her to reconsider the changes, which include a floating net asset value, capital requirements and imposing a holdback on customer funds, could alter the “fundamental structure” of money market funds.

“Any reduction in demand...
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