WASHINGTON Dec 13 The U.S. risk council
discussed potentially using its powers under the 2010 Dodd-Frank
law to impose more regulatory oversight on money market funds
during a closed door session Thursday, a Treasury spokeswoman
The Financial Stability Oversight Council has already issued
a proposed framework outlining potential new regulations for the
industry to prevent a run on the funds.
The council has said it prefers for the Securities and
Exchange Commission to tackle the issue directly. But the panel
could take action on its own if the SEC failed to come to a
If the FSOC ever did decide to designate a money market
fund, sponsor or adviser as systemically important, it would
translate into enhanced supervision by the Federal Reserve and
potential capital requirements.