MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, August 15, 2012 NY Fed Chief: Schapiro's Money Fund Regs Are Not Enough New York Fed president William Dudley pens a Bloomberg op-ed echoing SEC chair Mary Schapiro's ongoing PR campaign for tighter regulation on money market funds. But Dudley goes even further, writing that Schapiro's plans for money funds to adopt floating NAV is not enough to guarantee stability. Instead, he proposes "modest withdrawal restrictions" on money funds, following a plan outlined in a "recent paper by Fed economists. These withdrawal restrictions would create a "minimum balance at risk," perhaps 5 cents on the dollar, which would be redeemable after thirty days. Dudley says these restrictions would "increase market disciple. Corporations and other sophisticated investors would have an incentive to monitor risk taking more carefully, rather than rely on their ability to get out first when trouble materializes." Printed from: MFWire.com/story.asp?s=40943 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |