The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Money Funds Email Routing List Email & Route  Print Print
Thursday, April 19, 2012

Money Funds "More Resilient" Admits Treasury's Miller

News summary by MFWire's editors

A top Treasury official weighed in yesterday on her thoughts on money market reform.

"Further steps are needed to improve the stability of the industry and reduce money funds' susceptibility to runs, said Mary Miller, assistant secretary for financial markets at the U.S. Treasury. She was speaking at the National Federation of Municipal Analysts conference on Wednesday at the Four Seasons in Las Vegas.

Reuters reported Miller's comments.

Her brief comments on money market funds also conceded that money market funds are "more resilient today than they were in the lead up to the crisis."

Her comments on money funds included:

"Both SEC Chairman Mary Schapiro and Federal Reserve Chairman Ben Bernanke have recently expressed concerns with the inherent susceptibility of money market funds to liquidity runs during times of stress. Indeed, money market funds contributed to instability during the financial crisis in 2008 and at the time, the previous Administration was forced to intervene to prevent a widespread run. Since then, the SEC has taken actions to reduce the risk of this industry by adopting new portfolio credit, maturity, and liquidity requirements through 2a-7 reforms in February 2010."

"However, while money market funds are more resilient today than they were in the lead-up to the financial crisis, as noted in both the Presidentís Working Group Report in 2010 and the Financial Stability Oversight Councilís 2011 Annual Report, further steps are needed to improve the stability of the industry and reduce money fundsí susceptibility to runs. The SEC and other members of the Financial Stability Oversight Council (FSOC) are actively discussing the most appropriate way to affect this, while preserving the usefulness of these funds for investors and issuers, including those in the municipal market."


Edited by: Sean Hanna, Editor in Chief

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use