The Securities and Exchange Commission approved rule changes for money-market funds this week - some good and some bad, says James Sanford, a portfolio manager for Sag Harbor Advisors.
On the good side, the SEC now requires a floating net asset value rather than a fixed $1.00 par value for the funds, he writes on CNBC.com.
"However, the other proposed change, which would allow money managers to suspend redemptions by investors or charge them fees to redeem during volatile periods, is a travesty."
The U.S Treasury, which finances more than 90% of new student loans, is exploring ways to make repayment more affordable as defaults by almost 7 million Americans and other strapped borrowers restrain economic growth.
Leading the effort is Deputy Secretary Sarah Bloom Raskin, who became the department's No. 2 official in March after more than three years as a Federal Reserve governor. As higher-education debt swells to a record $1.2 trillion, Raskin, 53, is alert to parallels to the mortgage crisis.
Rodney Durham stopped working in 1991, declared bankruptcy and lives on Social Security. Nonetheless, Wells Fargo lent him $15,197 to buy a used Mitsubishi Sedan.
"I am not sure how I got the loan", Mr. Durham, age 60, said.