Treasury Is Trying To Shame The SEC Into Doing Something About A Problem That Almost Brought Down The Global Economy

Yesterday, the Treasury's Financial Security Oversight Council (FSOC) tried to act on one of biggest SEC failures since the financial crisis — regulating money market funds Bi reports.

Back in 2008 money market funds almost brought the global economy to its knees when the Reserve Fund, the U.S.'s biggest money market fund, set off a run.

The problem was that it owned $785 million in Lehman Brothers’ commercial paper, so when the bank collapsed, the Reserve Fund could no longer claim that it's shares were worth $1.  That's when the run started…..

Read more: http://www.businessinsider.com/fsoc-money-market-fund-regulation-2012-11#ixzz2CDetHmQN