The Securities and Exchange Commission on Wednesday unanimously agreed to propose amendments to its Rule 2a-7 that would remove all credit rating references from the rule, which requires money market funds to invest in high-quality and very liquid short-term securities.
The proposal, on which the SEC is seeking public comments through April 25, would implement a directive lawmakers included in the Dodd-Frank Wall Street Reform and Consumer Protection Act after criticizing the credit agencies for failing to adjust their ratings to forewarn of Enron’s collapse and the subprime mortgage meltdown.
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