News Summary: Regulators urge stricter fund rules

Associated Press

URGING MONEY FUND CHANGES: A group of federal regulators is urging the Securities and Exchange Commission to adopt stricter rules for money-market mutual funds.

RECOMMENDED OPTIONS: Among the options recommended by the Financial Stability Oversight Council are requirements for money funds to hold capital reserves against losses and limits on how quickly investors can withdraw their money.

POTENTIAL RISK: Money-market funds hold $2.7 trillion in assets. Regulators say changes are needed to protect the financial system. A big money-market fund collapsed during the 2008 financial crisis. That led the government to temporarily guarantee assets of all money funds so investors could be assured they would be protected from losses.

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