Opening price: $29.00
WASHINGTON—U.S. securities regulators on Wednesday took a long-awaited step to reduce risk in the $2.6 trillion money-market mutual-fund industry, completing rules intended to prevent a repeat of an investor stampede out of the funds during the 2008 financial crisis.
The Securities and Exchange Commission voted 3-2 on final rules that would require money funds catering to large, institutional investors to abandon their fixed $1 share price and float in value like other mutual funds. The rules also would allow money funds to temporarily block investors from withdrawing their money in times of stress, or allow the funds to impose a fee to redeem shares.
"This strong reform package will make our financial system more resilient," SEC Chairman Mary Jo White said ahead of the vote.
Companies would have up to two years to comply with the changes.
Cathy Gregg, a partner at Chicago-based Treasury Strategies, a consultant to institutional clients that use money funds, said she expects an initial pull back from investors in the funds. "I think there's going to be some segment of them who will have to stop using money market funds because they're not permitted to invest in a floating rate product like that, according to their investment guidelines," Ms. Gregg said.
The final rule is less ambitious than an earlier proposal considered at the SEC. Fund companies focused on individual investors won support for an approach that focuses the bulk of the restrictions on institutional investors, who exited the funds at a far greater rate than individual investors during the crisis.
The rules aim to discourage institutional investors from fleeing money funds en masse during periods of market tumult by training them to accept fluctuations in the value of their investments, and by ensuring funds sold to both institutional and individual investors have the ability to limit outflows.
The vote ends a lengthy battle over how to address structural
WASHINGTON (AP) — The Senate agreed Wednesday on an $11 billion measure to temporarily fix a multibillion-dollar shortfall in federal highway and transit programs, setting up a vote next week on several alternatives.
But senators will likely end up simply adopting a measure that passed the GOP-controlled House by a sweeping bipartisan vote last week, which would send it directly to President Barack Obama for his signature.
The House bill would provide enough money to keep the federal Highway Trust Fund solvent through May 2015. The fund pays for transportation programs nationwide. The money would come from pension law changes, customs fees and a fund to repair leaking underground fuel storage tanks.
The largest chunk of the money, $6.4 billion, results from allowing employers to defer payments to their employee pension plans. Funding pension plans normally results in a tax savings for companies, and deferring those payments means they will pay more in taxes and increase federal revenue. Critics say the idea is a gimmick since the pension changes cost the government money in the years beyond the 10-year window in which legislation is officially scored for its impact on the budget.
The measure is among the few must-do items before Congress goes on a five-week vacation in August. Without action, money to states for highway and transit projects could dry up next month at the height of the summer construction season.
The highway fund is expected to run dry by the end of August if Congress doesn't act. States have been told to expect an average 28 percent reduction in aid. Some states already have begun to delay or cancel construction projects due to the uncertainty of federal money.
It's hoped the measure will buy time for Congress to act next year on a longer-term highway measure.
When we get to $23.00, I'll reassess the situation and plan my next move...CASA has put us through hell - multiple class-action lawsuits, downgrades, short-selling by CASA, instigation of a massive short attack against CLF, and incessant production of negative articles, by ghost writers...
The next stop on the Choo Choo train is $15.64-68...making all stops to Times Square for the celebration...I'll take a Blimpie Tuna Sandwich, large fries and Coke...Oops! I am fasting today...today is the 26th day of the month of Ramadan...good things happen during this month...
CASA will crumble like a row of dominoes...CASA lovers will hang their heads in shame...the longest rope has an end...those who sought assistance through patience and prayers shall prevail over the disbelieving people...
WE HAVE IGNITION!
Is 29.75 the new target? We may have seen the last of that crackpot...
"I keep giving to you but you never show me the love."
These people have a fatal obsession with CASA, but they are in for a rude awakening - unrequited love.
What's your point, Mexican pimp? And learn to spell Cliffs, before you post garbage!
Wow, imaginejml is capable of rational thought!
It gets better from here...this dog has the propensity to make big leaps...BEWARE OF THE DOG!
"Cliff's", the stock that keeps on giving
Buying opportunities at lower and lower and lower and lower prices. LOL"
Imposter Alert! Look for poor grammar from the imposter...
CLIFFS IS A GREAT LONG-TERM INVESTMENT...