Bloomberg writes "SEC List Shows 155 Money Funds That Got Approval for Help". It says, "Money-market fund companies obtained permission to support 155 of their funds during the financial turmoil of 2007 and 2008, and six more funds got the same go-ahead since the crisis, according to a list provided to Congress by the U.S. Securities and Exchange Commission. Bank of New York Mellon Corp., Morgan Stanley and Charles Schwab Corp. are among companies that lined up the ability to bail out funds to guard against credit defaults or market illiquidity, according to the SEC's list, a copy of which was obtained by Bloomberg News. Northern Trust Corp., American International Group Inc. and Pioneer Investments bought troubled securities out of their funds in 2010 and 2011 after the SEC passed new rules to make funds more stable." Bloomberg adds, "The report stems from testimony Chairman Mary Schapiro gave to the Senate Banking Committee on June 22 aimed at bolstering regulators' arguments that money funds remain a threat to global financial market stability despite the 2010 rule changes. Fund companies had sought permission from the agency to provide support for funds more than 300 times since the 1970s, she told lawmakers." In other news, ICI released its "Money Market Mutual Funds" report, saying, "Total money market mutual fund assets increased by $10.94 billion to $2.562 trillion for the week ended Wednesday, August 8, the Investment Company Institute reported today."

Email This Article




Use a comma or a semicolon to separate

captcha image