On August 22nd, SEC Chairman Mary L. Schapiro announced that three of the SEC's five Commissioners do not support the publication of a money market mutual fund proposal which she spearheaded. As a result, no vote on the proposal will occur. Schapiro urges other regulatory agencies to act instead. Schapiro Statement. Commissioner Luis A. Aguilar issued his own statement explaining his concerns with the proposal championed by Schapiro. Aguilar suggests that a concept release on the broader cash management industry be issued so that pooled vehicles that are not currently subject to regulatory oversight be considered along with money market mutual funds. Aguilar Statement. On August 24th, Bloomberg summarized the steps other federal regulators could take with respect to money market funds. The Federal Reserve, for example, could limit bank borrowing from money market funds and banks which own money market funds could be required to hold more capital. Other Possibilities. Reuters discussed the steps the Financial Stability Oversight Council could take, and the likelihood that such steps will be taken. FSOC.
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Majority of commissioners reject money market reforms
- Winston & Strawn LLP
- August 27 2012
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