] might go private if the SEC pushes through its new round of money market fund regulations. On Thursday Christopher Donahue
, the CEO of the Pittsburgh-based mutual fund firm and a vocal critic of the SEC's proposals, said at a Citigroup financial services conference that going private again could be a contingency plan for Federated if the new regs pass.
The Pittsburgh Business Times
, the Pittsburgh Tribune Review
all reported on Donahue's remarks.
SEC Chairman Mary Schapiro
is pushing several new money fund regs, including: switching to floating net asset values instead of stable $1 NAVs; requiring fund firms to set up capital buffers for money funds; and restricting redemptions from the funds. Donahue has already threatened legal action to stop the proposals [see MFWire.com, 1/30/2012
on the NYSE) IPO'd in 1960, was bought out by Aetna in 1982, sold to a Donahue-family-controlled trust in 1989 and went public again in 1998. It's now worth $2.13 billion, as of market close on Friday, and has about $285 billion in money market assets, as well as about $88 billion in equity and bond fund assets.
Neil Anderson, Managing Editor
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