Skip to main content


March 20, 2013

The SEC's Big Chance

Prominent alumni of the Securities and Exchange Commission are defending the agency’s turf in a battle of Beltway bureaucracies. Wouldn’t it be nice if someone defended taxpayers?

On Wednesday several former SEC chairmen and commissioners wrote to the Financial Stability Oversight Council (FSOC) urging that panel of regulators to stay out of the way and let the SEC address potential reforms to money-market mutual funds. Perhaps the alums should also tell their old colleagues at the SEC to get on with it.

Taxpayers have been waiting years for the SEC to act to prevent a repeat of the 2008 federal bailout. If SEC commissioners want to keep other regulators from trying to fix problems created by SEC regulations, the obvious solution is to rewrite SEC rules—now.

“Though money funds are securities holding assets that rise and fall in value, SEC rules allow money funds to employ an accounting fiction to create the perception that their values are fixed. To further persuade investors that these securities are super-safe, the SEC anoints private credit-ratings agencies, including Standard & Poor’s, Moody’s and Fitch, to determine which assets are least risky and allegedly suitable to be owned by money funds.”


Read full Wall Street Journal article here

In the News


For media inquiries, please contact us at or 202-618-6433.

Contact Us

For media inquiries, please contact or 202-618-6433.

To sign up for our email newsletter, please visit this page.

This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact or 202-618-6433.


Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today