- IRS official refuses to answer questions at scandal hearing |
- Global stocks, oil fall after Bernanke; dollar gains |
- Oklahoma tornado victims astounded at how they survived |
- CORRECTED-White House threatens veto of bill to bypass Obama on Keystone
- FBI says man shot dead while being questioned about Boston bombings
US risk council votes to release money market funds proposal
WASHINGTON Nov 13 (Reuters) - The U.S. risk council voted on Tuesday to release a proposal for new rules for the $2.5 trillion money market fund industry, saying current regulations on the books are not enough to prevent runs in a time of crisis.
The Financial Stability Oversight Council's proposal largely mirrors a plan that was championed this summer by Securities and Exchange Commission Chairman Mary Schapiro but failed to garner enough support from three of her colleagues.
The proposal by the FSOC, a council of regulators created by the 2010 Dodd-Frank law and chaired by Treasury Secretary Timothy Geithner, is an effort to pressure the SEC to come together and try to agree on a course of action.
Geithner said the recommendation consists of three main options. One would call for funds to hold a capital buffer of up to 1 percent of a fund's value, and impose redemption holdbacks in times of stress.
Another would call for a move from a stable to a floating net asset value.
A third option would impose a higher buffer of 3 percent of a fund's value, but funds could hold less capital if they met other requirements.
- Tweet this
- Share this
- Digg this