Bloomberg writes "BlackRock's Fink Snubs 'Socialized' Money-Fund Industry Plan". The article says, "Laurence Fink, chief executive officer of BlackRock Inc., stands alone among the biggest U.S. money-market fund providers in opposing a proposed safety net for the industry that manages $3 trillion for investors. Fink, who has said companies should set aside their own capital cushions, won't back a plan to spread risk among money-market mutual fund firms.... JPMorgan Chase & Co., Federated Investors Inc., Vanguard Group Inc., Goldman Sachs Group Inc. and four other firms have endorsed the plan, which was proposed by the industry's trade group last month." Bloomberg quotes Peter Crane, "`Larry Fink has invested a lot of time and energy on an alternative idea, talking about capital reserves." Bloomberg adds, "BlackRock's dissent may make it harder for money funds to head off regulatory changes that could include an end to the stable $1 net asset value that made the funds a popular alternative to bank accounts.... The industry has planned since last year for an emergency-liquidity facility that would protect money-market mutual funds that invest in corporate debt, stepping in to buy securities at face value in the event of a financial crisis."
