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

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

Rating:The Feds Don't Care for Fink's Reform Plan Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, November 09, 2012

The Feds Don't Care for Fink's Reform Plan

News summary by MFWire's editors

Remember the alternative plan for money market reform floated last month by BlackRock [profile], Fidelity [profile], and Vanguard [profile]? Don't expect it to get very far.

Wall Street Journal reporters Scott Patterson and Andrew Ackerman write that this scheme has received a "chilly reception from federal regulators." According to the story, "[p]eople close to the SEC" think the industry's plan is too weak and could "trigger the type of destabilizing runs on money markets seen most recently during the collapse of Lehman Brothers."

The plan, which originated with BlackRock, calls for "circuit breakers" to slow fund redemptions in times of stress. The proposal was in response to FSOC chairman Tim Geithner's signaling that he was ready to push forward Mary Schapiro's reform proposals. The FSOC has the power to force the SEC to implement the reforms.

The two WSJ reporters say that the industry is seeking a deal with the SEC, rather than the FSOC, because its sees Schapiro's agency as "a friendlier regulator."

The two reporters quote law professor William Birdthistle, a money fund expert, who says the industry plan is "a bit of a farce. They're basically agreeing to alter their business during a time when no constraints on their business would be enforced."

Full story is here

Edited by: Chris Cumming


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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use