[ by Howard Haykin ] SEC reform of the structure of money market funds won't happen any time soon, according to Chairman Mary Schapiro.  Ms. Schapiro stated on Tuesday that she does not have support of three Commissioners - a majority of the SEC. Ms. Schapiro has long pushed for structural reforms that would reduce fund susceptibility to runs, protect retail investors and lessen the need for future taxpayer bailouts.  In her prepared statement, the Chairman said that she, along with many regulators and commentators on both sides of the political spectrum consider structural reform of money markets to be a piece of unfinished business from the financial crisis. Next Steps by the Commission. Rather than voting on any reform proposal, some Commissioners suggest the SEC issue a concept release.  Commissioner Schapiro rejects that idea, saying that the SEC has been debating the subject for 2-1/2 years and a concept release would not advance the discussion.  "The public needs concrete proposals to react to." While money market reform has been delayed, policymakers now should have a better understanding asto the issues raised by SEC commissioners - which may enable them to address systemic risks posed by money market funds.  Ms. Schapiro will do whatever she can to keep this issue alive, given these considerations:

• the tools that were used to stop the run on money market funds in 2008 no longer exist.
• there is no "back-up plan" in place if the event of another run on money market funds because money market funds effectively are operating without a net.
• potential systemic risk and the prospects of additional taxpayer bailouts mandate that public debate on appropriate reforms continues.
• the issue is too important to investors, to our economy and to taxpayers. to put our head in the sand and wish it away.

To continue reading Ms. Schapiro's further concerns and points of information, go to:  [SEC PR 12-166, 8/22/12].