U.S. Securities and Exchange Commission Chairman Mary Schapiro faced skeptical lawmakers from both parties today as she defended her campaign to overhaul the regulation of money-market funds.
In an appearance before the Senate Banking Committee that lasted just under an hour, Schapiro told lawmakers that while most funds are “well and responsibly managed,” they are susceptible to the types of runs that helped freeze credit markets in 2008. Schapiro hasn’t been able to convince a majority on her five-member commission to support a proposal to rewrite money-market rules and today’s hearing demonstrated the difficult task she faces on Capitol Hill as well.
The study’s release, which drew objections from three of the SEC’s five commissioners, was a “genuine screwup,” Schapiro said. IOSCO, based in Madrid, is an international organization of securities regulators, including the SEC.