Schapiro calls for more steps to prevent a run on money funds

Tougher regulations are needed to prevent a run on money market funds, Securities and Exchange Commission Chairman Mary Schapiro said Tuesday at the SEC's money fund roundtable. New reporting requirements and credit-quality standards have made some difference, Schapiro said, but too many investors still treat money funds as risk-free propositions rather than potentially volatile investment opportunities. Former U.S. Comptroller of the Currency John D. Hawke Jr. emphasized that regulating the funds like banks would not solve the issue, noting the number of bank failures since 2008 has "vastly outpaced" any failures of money market funds.

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