SEC Chairman Schapiro Remarks on Money Market Funds at FSOC Meeting

SEC Chairman Mary L. Schapiro delivered remarks at the Financial Stability Oversight Council (FSOC) meeting, in which she discussed FCOC's recommendations as to money market funds. In sum, FSOC is putting forward three proposed recommendations: a floating net asset value option so that money market funds would reflect their mark-to-market value like every other mutual fund; and two options that rely on various levels of stand-by capital protections combined with other measures to strengthen money market fund portfolios and disincentives runs. SEC Commissioner stated that she thought that the floating NAV option was the simplest and most obvious.

View speech in full here (links externally to SEC website).Related news item: FSOC Recommendations on Money Market Funds (Important Recommendations) (with Lofchie Comment). This news item contains a pretty good short summary of the recommendations, as well as a link to the underlying report.