The Wall Street Journal writes "US Senate Panel Sets June Money-Fund Hearing". The article comments, "Securities and Exchange Commission Chairman Mary Schapiro will defend her push for additional reforms in the $2.6 trillion money-market mutual fund industry before a Senate Banking Committee hearing set for next month. The hearing, which is scheduled for June 21 but has yet to be publicly announced, marks heightened congressional scrutiny of regulators' calls for additional reforms in the money-fund space.... Schapiro, joined by Federal Reserve and Treasury Department officials, see money-funds as one of the weakest links in the financial system, despite 2010 reforms that increased money-fund resilience. Specifically, Schapiro has said she is concerned that funds remain susceptible to sudden drops in the value of securities they own. She also warns regulators no longer have access to the tools they used to buttress the industry in 2008.... Many of the panel's senators are seen as friendly to the fund-industry, which says new rules could damp returns for millions of investors, prevent them from getting all their money at once and spread systemic risk by driving investors to unregulated corners of the financial markets."
