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Forum Post: Federated Threatens to Sue SEC Over Planned Money-Fund Rules

Posted 2 years ago on Jan. 27, 2012, 6:05 p.m. EST by GirlFriday (21780)
This content is user submitted and not an official statement

Jan. 27 (Bloomberg) -- Federated Investors Inc., the third- largest manager of U.S. money-market mutual funds, is planning legal action to block rule changes being contemplated by the Securities and Exchange Commission that the company said could destroy the $2.7 trillion cash-management industry.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/27/bloomberg_articlesLYH22E6S972E01-LYH6Y.DTL#ixzz1khdx2aKT

14 Comments

14 Comments


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[-] 2 points by MonetizingDiscontent (1257) 2 years ago

~Nice Post~

Thanks for the heads up. This -Federated- thing has me scratching my head a little. I'm wondering if these guys may have some ulterior motives that is eluding me. (and I have no love affair with the SEC)

Any thoughts on this?

::::::::Analysis: Federated cryptically votes nay on corporate pay::::::::

http://news.yahoo.com/analysis-federated-cryptically-votes-nay-corporate-pay-222534878.html

-Wed, Jan 11, 2012-

[+] -4 points by GirlFriday (21780) 2 years ago

I don't trust them as far as I can throw them.

[+] -4 points by ZenDog (20488) from South Burlington, VT 2 years ago

I don't understand how any of this stuff works - but I note the article states the SEC has been working for three years to come up with new regs to ensure no future run on these investments that would result in a freeze on global credit.

No response to the upcoming SEC March deadline by either Fidelity Investments and JPMorgan Chase & Co. - both players with a larger stake in this debate.

I would speculate that were there any adults in charge at any of these firms, then the SEC regs would already be settled upon, and there would be no controversy - simply because of the fact that a solid foundation is in everyone's interest.

Some people just like risk.

[-] 0 points by MonetizingDiscontent (1257) 2 years ago

"""were there any adults in charge at any of these firms, then the SEC regs would already be settled upon...""

lol -Completely Agreed- Even the S&L crisis was settled, and customers made whole within 48 hours if I remember correctly. The deck is so stacked now.

[+] -5 points by ZenDog (20488) from South Burlington, VT 2 years ago

S&L - you mean way back in the 80s . . .?

It seems crazy we are still attempting to grapple with the issue of financial regulation - clearly an indicator of failed policy stemming back decades.

[-] 1 points by MonetizingDiscontent (1257) 2 years ago

Decades of financial regulative litigating while conditions only continue to worsen, and its just more of the same de-evolutionary systemically failed policy.

If I had a magic wand, I'd have the SEC CME FCC CFTC truly & independently investigated for working together in concert to cover eachothers tracks... and a lot of these FCMs and regulators be investigated for being on the take.

-Systemic- Failure on a for real scale.

[+] -6 points by ZenDog (20488) from South Burlington, VT 2 years ago

that is an interesting idea - but I bet it isn't as concerted as you imagine.

people engaged in illegal activity - this doesn't quite rise to the same level as organized crime does - generally don't talk about their activities.

I think that in the white collar world some people just watch what others are doing, and finding permission to engage in behavior that cannot be discussed results in further expression of that behavior without discussion having taken place.

See what I mean?

That does not leave out the possibility of inter-agency ass covering - it is possible, even without discussion taking place - I'm not sure how likely it is. My perception is that in many cases the top of the bureaucratic heap is self serving.

It would be nice to be wrong on that point - although in this case that would seem to indicate conspiracy . . . .

[-] 1 points by MonetizingDiscontent (1257) 2 years ago

Think a code could be placed into high frequency trade algorithms, a signal, that other high frequency systems can detect, identify & respond to? in what might be essentially described as communication? breaking that code would be like trying to unlock an unknown language long forgotten though.

Then again, I could just be reading too many lousy financial reports. But It hard to believe sometimes, that policy makers are really this inept, for so many many years. I dont buy it when people say they are just stupid. Although i would prefer that to be the case, by far.

[+] -6 points by ZenDog (20488) from South Burlington, VT 2 years ago

there is and has been a long term effort by conservatives to institute a policy of financial deregulation - the movie Inside Job documented that very well.

At the same time, much of human behavior is understood on the basis of nonverbal cues - understanding this facet of human behavior does indeed provide the opportunity to create specific nonverbal forms of communication. These can include forms of verbalization that are not directed at the recipient but are yet received and correctly interpreted.

Some do call this a signal.

To what degree specialized coding may be in place within the various electronic devices prevalent in American society - including the financial industry - is something I have no expertise in.

I would note that the coding of high frequency trade algorithms are a human output - presumably we can design that machine to function and do most anything we can imagine, based on the capability of both the hardware and the coding that governs its operation.

So I guess it's not out of the question - and I guess the potential applications are only limited by the infrastructure and your own imagination.

[+] -5 points by GirlFriday (21780) 2 years ago

They are in mid tantrum.

[+] -5 points by ZenDog (20488) from South Burlington, VT 2 years ago

LoL!

Yeah, I think I got that part. Haha!

[+] -5 points by GirlFriday (21780) 2 years ago

I know. I am more thinking that the level of intensify that we have seen will be turned up a bit.

[+] -5 points by ZenDog (20488) from South Burlington, VT 2 years ago

Hopefully it is heard by the Occupy Movement in locals where these companies have offices - not just the Pittsburgh offices of Federated Investors Inc., but the offices of the other two players as well - I'm assuming they may be in NY . . .

[+] -5 points by GirlFriday (21780) 2 years ago

I agree.