Reuters writes "Federated CEO says would support some money fund reform". The article says, "Federated Investors Inc. Chief Executive Christopher Donahue, who has fought increased regulation of money market funds, said on Friday he would support a limited reform proposal. Donahue, whose Pittsburgh-based firm is one of the largest sponsors of money funds, said in an interview that he would back allowing funds to limit customer withdrawals in times of stress, a practice the industry calls "voluntary gates." Reuters quotes Donahue, "That would work.... It would be enhancing the resilience of the funds." The piece adds, "Forcing funds to adopt other reforms such as a floating net asset value would still be unacceptable, however, he said. Donahue's comments come as federal regulators this week renewed their efforts to strengthen regulation of the $2.5 trillion money fund industry following the financial crisis, when dozens came under stress amid rapid withdrawals." See also, WSJ's "Money Funds' $1 Share Price At Risk".
