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U.S. council of regulators outlines reform options for money-market funds, pressures SEC

Nov 14 2012 Emmanuel Olaoye, Regulatory Intelligence

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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