We’re talking about money market fund reform, of course.
It was just August 23 that Mary Schapiro threw up her hands when it became clear that she wouldn’t get the necessary two additional votes from SEC commissioners for her proposal after an intense lobbying effort by the industry.
But now (click to open in pdf)…
Hat tip to Shahien Nasiripour for passing along the copy, it’s a letter from Tim Geithner to the other members of the Financial Stability Oversight Council encouraging them, first, to use the Council’s authority under Dodd-Frank to “recommend that the SEC proceed with MMF reform.”
But if (when) that doesn’t work…
The FSOC meets on Friday, and you can expect the MMF industry to again fire up its lobbying efforts. Gonna be interesting to see what happens next, but it’s good to see that regulators haven’t given up just yet.
Money market fund reform goes down — FT Alphaville
MMF investors are getting antsy – FT Alphaville
The right and wrong debates about money market funds – FT Alphaville