Vanguard's McNabb on Concerns
Vanguard's Bill McNabb writes "Chairman: 2010 highlights, concerns for 2011." It asks, "What concerns do you have about 2011 and beyond? McNabb says, "I'd point to three areas: The first is financial reform -- what goes on in Washington, D.C. The Dodd-Frank legislation, signed in July 2010, was more of a starting line than a finish line for financial reform. It's a blueprint with many details that have yet to be drawn in. Researchers are still conducting studies, new regulatory bodies are still ramping up operations, and new rules are still being written. We're watching the process very closely. For instance, there are some interest groups that want to fundamentally alter the way money market funds work, essentially turning them into short-term bond funds. This would eliminate a low-risk and stable cash management tool for millions of investors. We are working very hard to ensure that the interests of mutual fund investors are front and center in the financial reform discussions." In other news, see ICI's "Money Market Mutual Fund Assets.
