We mentioned this Friday, but wanted to highlight again Bloomberg's 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."
