Comptroller of the Currency Says Moody’s Proposed Rating Methodology For Money Market Funds Must Not Rely on Sponsor Support
Criticism is mounting for a proposal from Moody’s Investor Services that would rate money market funds based on a fund sponsor’s ability and willingness to support a distressed fund. Acting Comptroller of the Currency John Walsh expressed the regulator’s opposition in a letter to Congressman Gregory Meeks, stating, “…we are opposed to any policy that creates an expectation that a national bank will be relied upon to provide support to a sponsored fund.”