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And asked yesterday if the SEC is investigating mutual funds' pricing of private companies, a spokeswoman responded to us this morning, saying the agency isn't commenting on its plans.
Changing the law would provide municipalities and school districts with greater freedom to decide where best to deposit taxpayer dollars -- taking into account the safety of funds, pricing and other taxpayer benefits.
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If consumers and companies are flooded with funds, prices and wages should start to rise.
Currently, funds price their shares at $1, rounded to the nearest penny, and promise they will remain there.
Other managers allowed "late trading"—in essence, clients placing orders after 4pm, the end of the trading day, when funds' prices are set.
In any case, he doubts that any such proposal could eliminate funds' stale pricing problem, which he says is caused by how funds price themselves, not by how often they do so.
Mutual funds price once per day, usually when the markets close in New York at 4 00 PM.
Unable to obtain these funds, prices on the exchange began to crash.
Professor Zitzewitz said last year that despite the arbitrage possibilities inherent in mutual fund pricing, funds were not doing much to correct matters.
It would be some minute detail of the money-fund pricing vs. bank deposits in a certain segment of the country.
DAVID SILVER, as a young regulator, helped negotiate the rule that sets the 4 p.m. deadline for fund pricing -- a rule he now agrees is obsolete.
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