Geithner Clearer on Money Market Fund Reform

摘要

At the Senate Banking hearings, Geithner was more assertive on the issue of money market fund reform. Both he and Senator Bob Corker (R.-Tenn.) agreed that the Securities & Exchange Commission (SEC) has been dragging its feet on the issue. The Financial Stability Oversight Council (FSOC) issued its latest annual report in mid-July and made a strong case for significant reform. Geithner is a member of that Council. As covered previously in this column, SEC Chairman Mary Schapiro has offered two options she wants the full Commission to consider: adopt a floating net asset value (NAV) or keep a stable $1 NAV but increase the capital buffers to support the funds' stable values, possibly combined with limited restrictions or fees on redemptions.