The presidents of all 12 Federal Reserve regional banks backed tougher oversight of some money- market mutual funds to strengthen the financial system, saying one alternative is to replace the fixed $1 share price with a market-based value.
Three of the five largest U.S. money-market fund managers, signaling they can’t stop a second attempt by regulators to overhaul rules for the $2.7 trillion industry, are fighting instead to limit the scope of any changes.
BlackRock Inc., taking a new position in the debate over money market mutual fund reform, said the $2.6 trillion industry would survive without its stable $1 share price if a reform plan being drafted by regulators included key additions.
JPMorgan Chase & Co . and a U.S. unit of French bank Natixis SA are offering money-market mutual funds aimed at wooing back customers spooked by the financial crisis into moving their money to federally insured deposits.
Mary Schapiro will step down next month as U.S. Securities and Exchange Commission chairman, turning over the reins to Commissioner Elisse Walter in a move industry observers say will bring little change at the agency.
U.S. Treasury Secretary Timothy Geithner yesterday urged the Securities and Exchange Commission to pursue new rules for money-market mutual funds, triggering fresh opposition from industry leaders who had beaten back similar proposals and are pursuing a weaker overhaul.