Politico writes "Democrats shy from money-market-fund reform". The article says, "In one of the first major financial reform battles since the passage of sweeping Wall Street reforms in 2010, support from Hill Democrats is missing in action. Federal regulators and the Obama administration have identified the money market mutual fund industry as unfinished business left over from the financial crisis and are warning that it remains a threat to the economy. But last month an effort by Securities and Exchange Commission Chairwoman Mary Schapiro to crack down on these funds was thwarted in the face of strong industry opposition after she failed to win the support of a Democratic swing vote, Luis Aguilar, at the five-member regulatory commission. Now, the Financial Stability Oversight Council, the super panel of regulators led by Treasury Secretary Timothy Geithner, is mulling over what steps it can take to further Schapiro's plan. Geithner, Schapiro and other regulators are taking on this task, however, without strong support from congressional Democrats, allies they have been able to count on in past fights with the financial industry." The piece quotes Sen. Chuck Schumer, "We have to do it, but I think there's a great deal of concern about how to do it without ending money market mutual funds." Politico quotes Sen. Mark Begich (D-Alaska), "The regulations under review by the SEC would have been harmful to Main Street. At a time when cities across the country are struggling to keep cops on the beat, teachers in schools, and the lights on at City Hall, the last thing we should be doing is making it harder to access critical short-term funding."
