The Battle Over Money Funds
By Thomas F. Cooley, Paganelli-Bull Professor of Business and International Trade, and Kim Schoenholtz, Professor of Management Practice
If safeguarding taxpayers is the top priority, reforming MMMF rules will not be a partisan issue.
Both Securities and Exchange Commission Chairman Mary Schapiro and Federal Reserve Chairman Ben Bernanke have warned in recent days that money market funds remain vulnerable to runs. That is unquestionably true, and if a run occurs, U.S. taxpayers will bear the costs of bailing them out. Should taxpayers continue to subsidize the money market mutual fund (MMMF) industry?
Read full article as published in Reuters.
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