The Kansas City Star writes "Banking reform should end $1 a share money market funds, KC Fed president says". It comments, "Regulation reforms in the wake of the financial crisis should take in money market mutual funds by ending their steady $1 a share price tags, said Tom Hoenig, president of the Federal Reserve Bank of Kansas City. Hoenig spoke this morning at a monetary and trade conference in Philadelphia. He highlighted his support for the sweeping Dodd-Frank Act that rewrites much of banking regulation.... Hoenig's call today would end the practice of allowing money funds to post a fixed $1 a share price on their shares. They should instead be required to report floating values for their shares as do mutual funds that invest in stocks and bonds, he said." It quotes Hoenig, "Shadow banks' reliance on this source of short-term funding and the associated threat of disruptive runs would be greatly reduced by eliminating the fixed $1 net asset value and requiring share values to float with their market values." See Hoenig's "Back to the Business of Banking".
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