NEW YORK (Reuters) - The head of the Federal Reserve Bank of Boston said on Tuesday that moves by fund companies to post daily net asset values, while positive, will not solve the risk of crisis-inspired runs in the troubled money-market industry.
“Posting the daily net asset values I think is a positive and I would encourage the industry to continue to think about ways where disclosure could be helpful,” Eric Rosengren, president of the Boston Fed, said in an interview.
“There are more disclosures that could still occur, including providing daily or weekly positions, for example,” he added. “But that disclosure alone doesn’t solve the issues particularly with the potential with runs on money market funds.”
Reporting by Jonathan Spicer