Reuters writes "Sheila Bair urges prompt reforms for money market funds". The article says, "If the Securities and Exchange Commission does not beef up its oversight of money market funds, a council of regulators should take the reins, former U.S. bank regulator Sheila Bair said on Thursday. Bair, who formerly chaired the Federal Deposit Insurance Corp, applauded the reforms that SEC Chairman Mary Schapiro has floated to bolster the funds, four years after a fund "broke the buck," letting its shares tumble before a dollar a piece and rattling markets. But Bair, in a letter to regulators, said that if Schapiro cannot get the votes needed to push the rules through, the Financial Stability Oversight Council should step in." Also, the latest weekly "Money Market Mutual Fund Assets release says, "Total money market mutual fund assets decreased by $12.25 billion to $2.539 trillion for the week ended Wednesday, July 18, the Investment Company Institute reported today. Taxable government funds decreased by $11.39 billion, taxable non-government funds decreased by $400 million, and tax-exempt funds decreased by $460 million." Finally, Bloomberg wrote yesterday, "BNY Mellon Considering European Deposit Fees After ECB Cut", which said, "Bank of New York Mellon Corp. (BK), the world's largest custody bank, is considering imposing a charge for holding client cash in Europe, after the European Central Bank cut its deposit rate to zero.... BNY Mellon, along with other money fund managers, this month restricted deposits into its European money funds, after the ECB decision left them unable to park cash with the central bank at a profit. Last year, BNY Mellon said it would impose a temporary fee for "excess" deposits in the U.S., after the debate over an extension of the country's debt ceiling prompted clients to move assets into cash. The fee was never levied on clients, Gibbons said."
