Former SEC Chair Criticizes Agency’s Money-Fund Punt

Inability to pass tougher rules is a ‘national disgrace,’ Levitt says.

U.S. Securities and Exchange Commission Chairman Mary Schapiro’s abandonment of her quest to impose tougher rules on money-market mutual funds is a “national disgrace,” said former SEC Chairman Arthur Levitt.

“There’s clearly a need to do something about money-market funds,” Levitt, 81, said today in a Bloomberg Radio interview with Tom Keene and Ken Prewitt. “Everything else is marked to the market. This should be marked to the market in the interest of investors. The fact that Mary Schapiro couldn’t get her three members of the commission to support this is really a national disgrace.”

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