U.S. Risk Panel Approves Draft Recommendations on Money Funds

A panel of U.S. financial regulators today began pushing the Securities and Exchange Commission to make new rules for the $2.6 trillion money-market mutual funds industry by endorsing a draft of recommended overhaul options.

The Financial Stability Oversight Council, a group formed by the Dodd-Frank Act and charged with addressing systemic financial risks, approved a set of options outlined in a Sept. 27 letter by its chairman, Treasury Secretary Timothy Geithner.

The recommendations included two measures opposed by the funds industry and rejected in August by a majority of SEC commissioners, and a third option that would include a variable- level capital buffer as high as 3 percent of assets.

To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.