SEC Says Money Fund Reforms Wouldn't Have Averted Crisis

Law360, New York (December 6, 2012, 3:57 PM EST) -- U.S. Securities and Exchange Commission rules adopted in 2010 to make money market funds safer likely would not have prevented a catastrophic run in the industry during the financial crisis, according to an agency staff report released Wednesday amid debate over new reforms.

The SEC is weighing additional rules designed to prevent a repeat of the crisis, when the collapse of Lehman Brothers Holdings Inc. caused the net asset value of the popular Reserve Primary Fund to fall below $1. The rare event, called "breaking the...
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