The Securities and Exchange Commission will unveil proposals aimed at stabilizing money-market funds in the event of another financial panic, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The SEC looks to minimize any losses for shareholders of the money funds, which invest in short-term debt instruments. At least three of five SEC commissioners would need to approve the proposals to submit them for public comment.
Under the SEC proposal, funds could boost their capital by injecting more cash from corporate coffers and issue stock or debt securities. The funds could also collect more money from shareholders, the paper said. Investors wanting to sell all their holdings at once would be able to get only about 95 percent of their money back immediately, with the remaining 5 percent returned to them after 30 days, the paper said...
http://www.reuters.com/article/2012/02/07/us-sec-moneymarketfunds-idUSTRE81609D20120207
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