Senator Bob Corker (R-TN), a member of the Senate Banking Committee, has urged the SEC Commissioners to work together to create a consensus proposal for money market fund reform. In a September 14th letter to the SEC, the Senator expressed his concern that a run on money market funds is “still a real risk in the case of a financial system dislocation.” He stressed that inaction is not an option and that the Commissioners and industry can find an “optimal solution” if they work together. Senator Corker added that there appears to be some “common ground” on implementing redemption restrictions (Chairman Schapiro supports a 30-day holdback on redemptions, while Commissioners Paredes and Gallagher have suggested a “gating” approach that would permit the fund board to impose redemption restrictions under certain circumstances).
