The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sat, 20 Jun 2026 11:30:52 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png The SEC Punts (Again) on Financial Stability Reform – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 The SEC Punts (Again) on Financial Stability Reform https://corpgov.law.harvard.edu/2012/09/04/the-sec-punts-again-on-financial-stability-reform/?utm_source=rss&utm_medium=rss&utm_campaign=the-sec-punts-again-on-financial-stability-reform https://corpgov.law.harvard.edu/2012/09/04/the-sec-punts-again-on-financial-stability-reform/#comments Tue, 04 Sep 2012 13:09:37 +0000 http://blogs.law.harvard.edu/corpgov/?p=32533?d=20120904090937EDT Editor’s Note: Jeffrey Gordon is the Richard Paul Richman Professor of Law and Co-Director of the Center for Law and Economics at Columbia Law School.

In an all-too-familiar pattern, the SEC has backed down in the face of industry pressure and dropped a key proposal to prevent a repetition of the 2008 financial crisis. Despite valiant efforts by Chair Mary Shapiro, a divided Commission has rejected further steps toward reform of money market funds, a $3 trillion dollar financial intermediary that was at ground zero of the financial crisis and that now presents a continuing threat to financial system stability.

A powerful industry group, mutual funds and some of their clients, have persuaded three SEC Commissioners to ignore the near implosion of the money market fund sector in 2008. Here are their names, for now is an accountability moment: Luis A. Aguilar, Daniel M. Gallagher, and Troy A. Parades.

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