WSJ writes "Schapiro Urged to Back Off Money-Fund Plan". It says, "Opposition to a Securities and Exchange Industry plan to tighten regulations on the U.S. money-market fund industry is intensifying, driving even some supporters to concede that a revamp isn't likely to advance. The mutual-fund industry is enlisting former mayors and state treasurers now serving in Congress to fight proposed changes to money-market fund rules, a strategy that could rally large numbers of lawmakers against the plan. Industry lobbyists have persuaded 33 Republican and Democratic lawmakers who served in state or local government to sign a letter to Securities and Exchange Commission Chairman Mary Schapiro warning against her plan to shore up the $2.6 trillion money-market mutual-fund industry. The letter from the Investment Company Institute raises concerns that her proposals "would alter the fundamental structure" of money-market funds and drive investors to "other less-regulated products," thereby dampening the demand for certain debt securities local governments use to fund infrastructure projects, according to a final draft seen by Dow Jones Newswires."
