As the Forum News Feed earlier noted, in a letter dated August 12, 2011, House Financial Services Chairman Spencer Bachus and Subcommittee Chairman Scott Garrett, joined by 14 other committee Republicans, had sharply questioned SEC Chairman Mary Schapiro about the SEC's consideration of floating NAV money market funds. In a letter dated August 26, 2011, Chairman Schapiro responded by noting that the Commission continues to consider all policy options for money market funds, including potentially requiring floating NAVs. Her letter stated:
I want to assure you that the Commission is taking a deliberative approach and reviewing the potential advantages and disadvantages of various policy options including a floating NAV. We know that there are also substantial risks in failing to address the risks that came to light in exploring all of the options available to us before moving forward and will consider carefully all of the comments we receive.
Attached to Chairman Schapiro's letter are specific answers to the questions posed by the congressional letter. In response to one question inquiring as to whether the prior reforms have changed the behavior of money fund advisers and boards, the Commission described recent reforms, such as stress tests, and responded:
Money market funds' boards are thus now better informed about the risks facing their funds, but given the short period of time during which these new requirements have been in effect, it remains to be seen how boards will use this new information.