NEW YORK - In the wake of the ongoing credit crisis and illiquid money market, much of it due to the failure of a single money market mutual fund, the Securities and Exchange Commission plans to overhaul Rule 2-a7. Separately, the Department of the Treasury is looking into creating a market stability regulator with omniscient powers across the "entire financial system."
"Money market funds have been stable throughout some of the most challenging environments," said Andrew J. Donohue, director of the SEC's division of investment management, addressing Investment Company Institute members here Monday. "The model is to be improved. The goals of stability, liquidity, income can sometimes be in conflict with one another."