Two articles in Investment News (here and here) note that the SEC appears to be moving forward on its money market fund proposal, scheduling a commission vote on August 29. If passed, the proposal will go into a public comment period which will bring heavy lobbying by the investment industry. The Chair of the Commission, Mary Shapiro, has made it very clear in recent months that the regulatory community is plumping for measures to reduce the likelihood of another fund breaking the buck.
The articles maintain that the outcome of the vote is in question. I would very surprised if the vote is held and the proposal does not pass. This has been discussed to death already. Everyone is clear on the issues. That the new Financial Oversight Board and the Federal Reserve have publicly declared their support, and outlined regulatory steps to enforce it, suggest the proposal is all but guaranteed passage.
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