Wednesday, June 12, 2013

Cyprus, Anyone?

The Securities and Exchange Commission (SEC) proposed a new rule last week that should really raise an eyebrow.

The rule would make it very difficult for some investors to withdraw their money from money market accounts "during times of financial distress."

To recap, here's what they did in Cyprus.

What do they mean by a time of financial distress?  Who knows.  The collapse of 2008 was certainly regarded as a time of financial distress.

The public has 90 days to comment on the new regulations.  To comment electronically:
• Use the Commission’s Internet comment form (http://www.sec.gov/rules/proposed.shtml); or
• Send an e-mail to rule-comments@sec.gov. Please include File Number S7-03-13 on the subject line; or
• Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

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