SEC Chief Pushes Money-Fund Revamp

The head of the Securities and Exchange Commission defended her calls for a revamp of the $2.6 trillion U.S. money-fund industry, saying at a Senate hearing that it remains a risk to the financial system. The SEC’s Mary Schapiro said the funds need additional safeguards because investors still can flee money funds en masse, leading to instability in the $1-a-share price target. Federal Reserve and Treasury Department officials have joined Ms. Schapiro in calling for additional overhauls, saying money funds are a weak link in the financial system despite safeguards introduced in 2010. Read Wall Street Journal report here.