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Individuals and businesses including many small companies have two and a half trillion dollars parked in money market mutual funds the industry is battling efforts by the chairman of the SEC to regulate the more she says to protect customers and prevent runs on them and financial panics.
Remember that during the 2008 financial crisis one fund broke the buck scared customers pulled about 300 million dollars for money funds during the crisis.
The SEC chairman says that kind of run could freeze up credit markets.
They are the costs on.
Small businesses and individuals not being -- to.
Access their cash management accounts and and -- -- payrolls are tuition payments.
And it could have implications of another Ron I think for our economy are very broad and very deep.
The SEC adopted reforms of money funds and twenty tent but Shapiro is now worried.
About their holdings of short term debt securities of European banks.
Shapiro has been pushing for either a floating asset value or new capital buffers with restrictions on redemptions during times of financial market stress.
The industry says the 2010 reforms are working just fine.
And new rules would drive off customers' money funds say they've been cutting back on their European holdings and what remains as the highest rated and safest.
That's it for this edition of the small business report I'm Peter Barnes Fox Business Network.
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