Yoomi Lee | Bloomberg LawSEC Speech, Mary L. Schapiro, Remarks at SIFMA's 2001 Annual Meeting (Nov. 7, 2011) Securities and Exchange Commission (SEC) Chairman Mary L. Schapiro spoke at the Securities Industry and Financial Markets Association's (SIFMA) 2011 Annual Meeting regarding money market funds and the SEC's ongoing efforts in coordination with the Financial Stability Oversight Council (FSOC) to reform the structure of these investments. The SEC plans to revamp rules for money market funds to (1) improve market resiliency by reducing money market funds' susceptibility to runs, and (2) provide a greater cushion in the event of a poor credit decision or decrease in short-term liquidity. Although the SEC already has enacted significant reforms to protect the $2.6 trillion money market fund industry, Schapiro maintained that additional steps need to be taken to address the structural features that make money market funds vulnerable to runs.
SEC's Recent Reforms
Additional Money Market Fund Reform is Necessary
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