Speaking too softly

28 September 2012 By Agnes T. Crane

U.S. money market funds escaped reform at the hands of the Securities and Exchange Commission. Now Tim Geithner wants the Financial Stability Oversight Council to act. But the Treasury secretary looks too ready to compromise with an industry that has lobbied hard against change.

This content is for Subscribers only

Context News

In a letter dated Sept. 27, U.S. Treasury Secretary Timothy Geithner asked the Financial Stability Oversight Council, which he chairs, to circulate a number of proposed reforms for money market funds for public comment. The Securities and Exchange Commission should implement the reforms, Geithner said, but said if the agency is unable to do so in a timely manner the FSOC and other regulators could step in.

On Aug. 22, SEC Chairman Mary Schapiro said the regulator would not formally put forward its money market reform proposals since three of five commissioners opposed them.

Email a friend

Please complete the form below.

Required fields *