Hits and Misses On Money Market Reforms [Real Clear Markets]

Many U.S. regulators view money market funds as a key source of systemic risk because of what happened to the Primary Reserve Fund during the 2008 financial crisis. When that Fund’s holdings in the commercial paper of Lehman Brothers went south, the Fund “broke the buck” — leading other investors to redeem the shares of similar money market funds, even if they did not hold any Lehman paper.

Read the rest at RealClearMarkets.com.

The SEC Gets Money-Fund Reform Half Right [Wall Street Journal]

Co-authored with Theresa Hamacher.

The Securities and Exchange Commission recently proposed two new rules to help prevent sudden redemptions of money-market shares by investors from wreaking havoc on the financial system. The first proposal, requiring a “floating NAV” (net asset value), deserves support because it is limited to the most risky type of money-market funds: those held mainly by fast-moving institutions and invested largely in prime commercial paper.

Read the rest at on.wsj.com (behind paywall)

Judging Success in Translational Medical Research [Stanford Social Innovation Review]

I I have run large organizations but spent little time in medical labs. So when I write about translational medical research, I think about the famous announcement in the London Underground: “Mind the gap.” Translational research is all about filling two organizational gaps. The first gap is between the scientists making discoveries in the lab and the clinicians seeking patient therapies. The second gap comes later—between finding attractive targets for drugs and diagnostics, for example.

Read the rest at ssireview.org (subscription required).

Charities have little to fear from effect of deduction rule on contributions [Washington Post]

Co-authored with Theresa Hamacher.

As April 15 approaches, high-income taxpayers may be thinking about the impact of recent legislation limiting their itemized deductions. Under one part of the legislative package from January, itemized deductions are reduced once income exceeds a certain threshold: $250,000 for single taxpayers and $300,000 for married couples.

Read the rest at washingtonpost.com.

New tax provision on deductions won’t hurt charitable giving [Boston Globe: The Podium]

In the recent tax legislation to avoid the fiscal cliff, Congress reinstated a limitation on itemized deductions for affluent taxpayers, known as Pease (after its original author, the late Rep. Donald Pease). Under Pease, itemized deductions are modestly reduced depending on how much a taxpayer’s adjusted gross income exceeds a specified threshold — $250,000 for an individual and $300,000 for a married couple.

Read the rest at BostonGlobe.com