More than half of Europe’s money market funds by assets have closed because securities they invest in pay negative returns after the European Central Bank cut interest rates, according to Standard & Poor’s.
Arthur Levitt, former Securities and Exchange Commission chairman, says an S.E.C. proposal on money market funds "would only make matters worse." Levitt talks with Bloomberg's Tom Keene on Bloomberg Radio's "Bloomberg Surveillance."
The six largest U.S. money market funds have eliminated their lending to Italian and Spanish banks, reduced investments in French banks and are favoring Swiss securities for their $511 billion of assets.