ICI's latest "Money Market Mutual Fund Assets" report shows assets increasing for the 7th straight week approaching the $2.7 trillion level. ICI says, "Total money market mutual fund assets increased by $14.21 billion to $2.692 trillion for the week ended Wednesday, December 21, the Investment Company Institute reported today. Taxable government funds increased by $20.62 billion, taxable non-government funds decreased by $8.14 billion, and tax-exempt funds increased by $1.73 billion." Over the past 7 weeks, money fund assets have increased by $69.8 billion, or 2.7%. YTD, money fund assets have decreased by $118 billion, or 4.2%. In other news, Bloomberg posted an editorial entitled, "Money-Market Funds That 'Break the Buck' Can Be a Memory: View". It says, "As these events show, the Securities and Exchange Commission, which regulates mutual funds, should make them less susceptible to mass withdrawals. The need for an overhaul is magnified by Europe's debt crisis.... The SEC took an initial step a year ago by adopting several changes, some based on industry recommendations. Money-market funds now must hold at least 10 percent of their assets in cash or investments that can be swapped for cash within one day. Other changes include holding investments with shorter maturities, letting funds get their hands on cash more quickly. At least the SEC recognizes that it didn't go far enough. Last month, Chairman Mary Schapiro offered two additional proposals: requiring money-market funds to build a capital cushion and allowing share prices to float."
