The Wall Street Journal writes "SEC Poised to Finalize Money-Fund Rules in Coming Weeks". It says, "U.S. securities regulators are poised to finalize long-awaited rules intended to prevent a repeat of the 2008 financial crisis, when an investor stampede out of money-market mutual funds threatened to freeze corporate lending, according to people familiar with the process. The Securities and Exchange Commission is expected to vote on a plan as early as this month that would require certain money funds catering to large, institutional investors to abandon their fixed $1 share price and float in value like other mutual funds, these people said. The plan also would allow money funds to temporarily block investors from withdrawing their money in times of stress or require a fee to redeem shares. Such so-called redemption limits come over the objections of other regulators, including members of the Financial Stability Oversight Council, who have said such restrictions could spur, rather than curb, investor stampedes." Note: Less than a month ago, the Journal wrote "SEC Divided on Money-Market Fund Rules", which said it would be some time before we see new rules. Bloomberg also writes "Prime Money Funds to Float $1 Share Price Under SEC Plan", which says, "The proposal, which was issued last year, is likely to be voted on by the five-member commission on July 23, the person said. The plan would require prime institutional funds to float the value of their share price, traditionally set at a stable $1, which makes them a popular place to park cash. It also would require funds to impose a one-percent fee on redemptions and permit them to temporarily suspend withdrawals when liquidity drops well below required levels."
