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.
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