Securities and Exchange Commission Chairman Mary Schapiro today answered  Paul Scott Stevens’ volley with one of her own in front of the Committee on Banking, Housing, and Urban Affairs of the United States Senate.

In short, Schapiro said money market funds as currently structured pose a significant destabilizing risk to the financial system. “While the Commission’s 2010 reforms made meaningful improvements in the liquidity of money market funds, they remain susceptible to the risk of destabilizing runs,” she said.

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