Bernanke Comments on Money Funds
Federal Reserve Chairman Ben Bernanke commented briefly on money funds at yesterday's news conference. At 51:00 minutes into the briefing, Kate Davidson from Politico said, "The SEC's MMF Proposal is far less comprehensive than the plan that you and the FSOC endorsed. Do you think FSOC should defer to the SEC or still press for more to be done?" Bernanke answered, "I am very glad to see that the SEC has taken up money market reform. It is by far the best outcome for the SEC to do it. It's an area where they have the expertise and where they have the experience. In terms of the actual proposal, of course it's just a proposal for comment. One of their two proposals, the floating NAV, is of course qualitatively similar one of the [FSOC] proposals. We have not yet reviewed this in enough detail to give a view. But I know for sure that by putting out a floating NAV proposal they're moving in the right direction, and I'm hopeful that what comes out will be enough to meet the very important need of stabilizing money market funds." See also the FOMC's Statement.
