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Chamber Criticizes Potential FSOC Action on Money Funds

On November 5, the U.S. Chamber of Commerce sent a letter to Treasury Secretary Timothy Geithner asking him to withdraw his request that the Financial Stability Oversight Council (“FSOC”) use Dodd-Frank Act authority to recommend changes to the SEC’s money market fund regulatory regime.  The letter states that by getting involved in the process, the FSOC “would only repeat or exacerbate the flawed approach the SEC has taken over the past year.”  Instead, the Chamber urges the FSOC to allow the SEC to move forward with its own money market fund reform plan.  The letter notes that the SEC is currently studying the effects of the 2010 money fund amendments, and after that, it will decide what action, if any, to take.  “Only at that time, with a full understanding of the SEC’s analysis and proposed course of action, should the [FSOC] consider [using Dodd-Frank authority to recommend changes] on an issue that is four square in the SEC’s jurisdiction,” according to the Chamber.