Shares of money fund manager Federated jump after SEC failure
(Reuters) - Shares of Federated Investors Inc (FII.N), one of the largest managers of U.S. money market funds, jumped nearly 6 percent on Thursday after a regulatory proposal to clamp down on the funds failed.
Late on Wednesday, Securities and Exchange Commission Chairman Mary Schapiro conceded she did not have the votes at the agency to approve new money fund rules.
Federated did not comment immediately on the SEC news, but top officials at the Pittsburgh-based company, including Chief Executive Christopher Donahue, have repeatedly warned that the proposed rules would destroy the industry by driving away investors and increasing costs.
Federated shares rose 5.7 percent to $21.80 in morning trading on the New York Stock Exchange.
Federated oversaw $355.9 billion of assets as of June 30, including $265.5 billion, or 75 percent, in money market funds and related products. Federated is the third-largest manager of U.S. money funds, trailing only Fidelity Investments and JPMorgan Chase & Co (JPM.N).
(Reporting by Aaron Pressman; editing by John Wallace)
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