02/07/2012 11:59 am ET

How The SEC Is Making Strides To Regulate Money-Market Funds

Banks need to be regulated. Depositors can’t be expected to do due diligence on their financials, so you need deposit insurance. And in turn, the government — which provides the deposit insurance — needs to make sure that the banks have certain minimum levels of capital. Otherwise, the insurance fund will go bust in no time.

All of this is wholly uncontroversial — until you get to the subject of money-market funds.

Read more on Reuters