In an effort to address the threats money market mutual funds (MMFs) can pose to the financial system, the Financial Stability Oversight Council on Tuesday unanimously voted to propose structural reforms for the $2.4 trillion domestic marketplace.
The Council, through its authority under the Dodd-Frank Act, is proposing three alternatives that are intended to reduce the risk of runs and other related problems. In doing so, the FSOC steps into an area left unaddressed by the Securities and Exchange Commission due to an impasse between its commissioners and Chairman Mary Schapiro over remedies that had ben debated for more than two years.
