Money market fundsters may want to pay more attention to Eric Rosengren
, president of the Federal Reserve Bank of Boston. Speaking today a conference in Sweden, Rosengren stressed that, "given the systemic importance" of money market mutual funds, the $2.5-trillion business needs more regulatory oversight, the Wall Street Journal
"It is critical that one way or another we make the industry less susceptible to credit shocks and liquidity runs," Rosengren said.
Fundsters should pay particular attention to Rosengren, as the Boston Fed has been in charge of the Fed's money fund rescue programs and oversight efforts.
Yet fundsters may breath one sigh of relief in all of this: Rosengren prefers requiring money funds to have "a meaningful, capital-life buffer" and not a floating net-asset value (an idea touted by, among others, former Fed chairman Paul Volcker).
Neil Anderson, Managing Editor
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