Bloomberg writes "Bernanke Proposes Less Restrictive Rules for Money Funds", which says, "U.S. Federal Reserve Chairman Ben S. Bernanke said money-market mutual funds may need more regulation, though he didn't endorse rules backed by former Fed chief Paul Volcker that would treat the industry more like banks.... The comments signal Bernanke favors less aggressive rules for money funds than those recommended by a group including Volcker, an adviser to President Barack Obama. The group proposes regulating money-market funds more like banks, with reserve requirements and mandatory federal insurance." Bloomberg reporter Chris Condon wrote, "ICI spokesman Gregory Ahern today welcomed Bernanke's remarks without commenting on the specific proposals." Ahern said, "We agree with Chairman Bernanke that money-market funds play a crucial role in the U.S. economy and appreciate his comments on the need to increase the resiliency of the money markets, generally, and money-market funds, in particular." The article adds, "The ICI in November formed a panel headed by Vanguard Group Inc. Chairman John J. Brennan to develop recommendations to improve the money-market fund industry. It is due to deliver its report by the end of March."
