Senior executives from BlackRock, JPMorgan and Federated Investors will also serve on the panel. Brennan has already been heading an informal group of industry executives working with the Federal Reserve, U.S. Treasury and the Securities and Exchange Commission.
Money market mutual funds experienced a record $200 billion run in the two weeks following the second fund ever to break the buck when, on Sept. 15, the net asset value of Reserve Funds Primary Fund fell to 97 cents. Primary held $785 million in commercial paper in Lehman Brothers that became worthless when the firm suddenly filed for bankruptcy.
According to the ICI, money market funds finance 40% of commercial paper and 20% apiece of marketable Treasury bills and municipal securities.
Events in September and October underscore the vital role that the [mutual fund money] market plays in the nations economy as a source of financing for U.S. businesses, financial institutions, consumers and municipalities, Brennan said.
The SEC indicated in September it will be reviewing Rule 2a-7, which pertains to money market funds.