The council of regulators responsible for overseeing the stability of the U.S. financial system proposed potential reforms on Tuesday to the money-market industry as it acted to overcome a stalemate at the Securities and Exchange Commission and broadened the range of reform options.
During the meeting, Treasury Secretary Tim Geithner said the money-market industry needed reform after several funds suffered a run during the 2007-09 financial crisis.
"We are not yet at the point where we have achieved and put in place a set of reforms that provide us a sufficient degree of comfort against those basic vulnerabilities," said Geithner who chairs the Financial Stability Oversight Council, an oversight body of U.S. regulatory agencies established under the 2010 Dodd-Frank overhaul of Wall Street regulation.
Money-market funds invest cash from a wide range of investors, from individuals through small businesses to large institutional investors, in government securities and in repurchase
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