William C. Dudley, president of the Federal Reserve Bank of New York, said new rules are needed to protect the financial system from a run on money-market mutual funds, lending his support to a regulatory overhaul proposed by U.S. Securities and Exchange Commission Chairman Mary Schapiro. “A glaring vulnerability exists with money-market mutual funds,” Dudley wrote today in a Bloomberg View column. “Money funds should have capital buffers and modest limits on investor withdrawals. Such reforms are necessary to protect the economy from financial instability in the future.” Capital cushions and redemption restrictions ... (full story)