The Wall Street Journal writes "Key SEC Holdout in Money-Fund Overhaul Reverses Stance". The story says, "The $2.6 trillion U.S. money-market fund industry is headed toward a drastically new look next year, as a regulator who blocked an overhaul effort this past summer has dropped his opposition. Securities and Exchange Commission member Luis Aguilar, a former mutual-fund executive, said in an interview that he would support a proposal that requires money-market funds to "float" their share prices like other mutual funds, a system that would end the $1 peg for their net asset value that money-fund shares have had for decades." Aguilar says, "I'm not fundamentally opposed to including a properly structured floating net asset value as part of a proposal.... "I expect that sooner rather than later in 2013 we should be in a position to put forth a more informed proposal for comment." The Journal writes, "He added that he hadn't seen the new plan SEC staffers are drafting to overhaul the industry's regulation.... The SEC requires majority votes to approve and enact new rules. The commission is set to shrink to four from five members with the planned resignation of Ms. Schapiro this coming week. Her successor as chairman, Elisse Walter, previously backed Ms. Schapiro's earlier plan, which would have proposed floating prices as one alternative for bolstering money funds."
