Investment News on 15c3: "Dispute Over Broker-Dealer Cash Erupts". Today's article discusses some of the late comment letters on the SEC's Proposed "Financial Responsibility Rules for Broker-Dealers", which will allow the use of money funds, and prohibit the use of affiliated banks, for reserve deposits. "Reserve funds total some $150 billion in assets", said Eugene Maloney, of Federated Investors. Maloney says 30% of reserves are in government paper and 70% are in "unsecured deposits at commercial banks" adding, "Diversified AAA-rated money funds are far superior riskwise to unsecured deposits at one bank."

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