BNY Mellon Corp's investment management chief on Wednesday said he saw "some merit" to stiffer capital requirements and other rules for money funds proposed by U.S. regulators, in comments that exposed a schism in the $2.5 trillion industry.
BNY Mellon investment chief Curtis Arledge's positive remarks offer a sharp contrast to an industry that has widely panned the reforms proposed by U.S. regulators.
On Tuesday, leading members of the industry, including top money fund manager Fidelity Investments, criticized proposals by the Financial Stability Oversight Council, a board of top regulators chaired by Treasury Secretary Timothy Geithner.
Shares in Federated Investors Inc, heavily involved in money funds, fell 4 percent to $18.50 in Wednesday trading as the industry schism became more apparent.
But Arledge, who oversees BNY's $322 billion cash management business, said he supports ideas like requiring riskier and less diversified funds to have a bigger capital
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