Thursday, June 21, 2012

Feds Build Case Against Money Funds

Money market mutual funds have been rescued from financial trouble by their parent companies more than 300 times since the 1970s, about 100 more than previously reported, according to a new Securities and Exchange Commission study, the WSJ reports..

The study, which isn't being released to the public, appears to bolster SEC Chairman Mary Schapiro's contention that the $2.6 trillion industry needs stronger regulation.

Ms. Schapiro is expected to present her case at a Senate hearing on money funds on Thursday. She hasn't been able to win majority support from the five SEC commissioners for her plan, which includes a rule limiting how …

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