Bloomberg News

Risk Council to Meet on Money-Market Mutual Funds

November 08, 2012

The Financial Stability Oversight Council will meet Nov. 13 to discuss recommendations to overhaul money-market mutual fund regulations, the Treasury Department said in a statement today in Washington.

Treasury Secretary Timothy F. Geithner, the council’s chairman, has been putting pressure on the Securities and Exchange Commission to tighten oversight of the $2.6 trillion money-market fund industry, saying the funds may pose a risk to the stability of the U.S. financial system if they failed.

Geithner asked the FSOC in September to prepare recommendations for the overhaul of money-market funds for this month’s meeting.

SEC Chairman Mary Schapiro in August gave up on a plan to tighten regulation of the funds after three of the five commissioners -- Republicans Daniel Gallagher and Troy Paredes, joined by Democrat Luis Aguilar -- told her they wouldn’t vote to issue it for public comment.

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net.

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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