WASHINGTON — Treasurers of municipalities should consider moving cash out of money market funds if they aren’t prepared to assume the inherent risks that come with such investments, the head of the Securities and Exchange Commission said Thursday.

In testimony before the Senate Banking Committee, SEC chairman Mary Schapiro laid out her case for additional regulation of the $2.6 trillion money market mutual fund industry, noting that governments that invest in such funds should be prepared to absorb losses.

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