BlackRock supportive of SEC money market fund reform


"BlackRock (BLK -0.5%) supports the SECs efforts to improve the resiliency of U.S. money market funds during times of stress and appreciates the thoughtful, deliberate and consultative process the Agency has undertaken to achieve this result."

The new rules are aimed primarily at institutional investors and retail is not likely to be affected by temporary blocks from removing money and/or gate fees. This means primarily institutional shops like Federated Investors (FII -0.4%) are more likely to notice the change than retail-focused Schwab (SCHW -0.2%). Federated gets 40% of its revenue from its money-fund - a far higher ratio than BlackRock - and, not surprisingly, was an opponent of the rule change.

Previously: SEC to adopt money fund regulations

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Comments (1)
  • King Rat
    , contributor
    Comments (1556) | Send Message
     
    It would be nice to get clarity on whether this affects all "funds" including FDIC-insured "accounts" and "deposits" or on specific, non-insured "funds".

     

    Suddenly "consumer advocates" are claiming that this will only help the wealthy because they do not go far enough, and all money market accounts should be able to fluctuate. Whose side are they advocating. If some poor widow puts all her money into an FDIC-insured account, I would sure hope that the value would not legally be able to fluctuate. Otherwise she could lose her life-savings in the next financial crisis.
    23 Jul 2014, 03:34 PM Reply Like
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