Investment News writes "2011 proves money market reform not needed: ICI". The piece says, "The past year has seen its fair share of market shocks, from the downgrade of the U.S. credit rating to the ongoing sovereign-debt crisis in Europe. Investors have felt the effects with wild swings in stock prices. One area that's held steady -- perhaps surprisingly so -- has been money market funds. Indeed, the funds have been rock solid despite serious concerns about their exposure to European debt.... Whether it's good enough for the SEC remains to be seen. In the first quarter of 2012, the Securities and Exchange Commission is expected to issue a proposal to help safeguard money funds, either by having a fund's net asset value float above or below $1 or by requiring a capital buffer that could be tapped in the face of excessive withdrawals.... [ICI's Karrie] McMillan believes further action by the SEC isn't necessary -- and could hurt the industry by making the funds less attractive to investors. That's the last thing money fund firms need at the moment."
