Friday, November 09, 2012

FSOC to Meet and Consider Reform of Money Market Funds

Treasury Secretary Tim Geithner will preside over an open session of the Financial Stability Oversight Council that will discuss proposed recommendations regarding money market mutual fund reform pursuant to the Council’s authority under section 120 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.   The Secretary’s letter of September 27 to members of FSOC urging action on money market mutual funds noted that the Dodd-Frank Act gives the Council both the responsibility and the authority to take action to address risks to financial stability if an agency fails to do so. In the letter, the Secretary said that the Council should issue for public comment a set of options for reform to support the recommendation in its annual report. FSOC would consider the comments and provide a final recommendation to the SEC which, pursuant to the Dodd-Frank Act would be required to adopt the recommended standards or explain in writing why it had failed to act.