Two U.S. Securities and Exchange Commission members faulted chairman Mary Schapiro's handling of discussions over rules governing money-market funds, saying she misrepresented other commissioners' dissents after proposing regulations that could “severely compromise” the industry.

“The changes the Chairman advocated were not supported by the requisite data and analysis, were unlikely to be effective in achieving their primary purpose, and would impose significant costs on issuers and investors while potentially introducing new risks into the nation's financial system,” Republican commissioners Daniel Gallagher and Troy Paredes said yesterday in a statement.

The statement is the latest in a string of public barbs among the SEC's presidentially appointed commissioners following Schapiro's decision last week to scrap a vote on a proposal for tighter money-market fund rules. In canceling the vote, Schapiro said “the issue is too important to investors, to our economy and to taxpayers to put our head in the sand and wish it away.”