Tuesday, November 6, 2012
The U.S. Chamber of Commerce, in a letter to Treasury Secretary Timothy Geithner, expressed its concern about Treasury's request that the Financial Stability Oversight Council (FSOC) use its authority, under Dodd-Frank 120, to recommend changes to the SEC's regulation of money market funds. Such action would, it warns, "create uncertainty, weaken financial regulation, harm investors, and damage the capital formation process needed for businesses to grow and create jobs."
The Chamber faults the SEC for "failing to do any of the necessary work to study the impact of prior money market mutual fund reforms and identify any additional needed changes." The Chamber requests that Treasury withdraw its request and instead encourage the SEC to consider a different approach. The Chamber understands that the SEC is moving forward with a study of the impact of the 2010 reforms. Only after completion of that study and any proposed course of action by the SEC should the Council consider using its authority under Dodd-Frank 120.