The Wall Street Journal writes "Geithner: SEC Must Do More on Regulating Money-Market Funds". It says, "U.S. Treasury Secretary Timothy Geithner Thursday said money-market funds remain a risk to the financial system and argued the Securities and Exchange Commission has to push harder to change money-fund rules. Mr. Geithner, in response to questions from Sen. Bob Corker (R., Tenn.), argued that money-market funds were still vulnerable to runs that could hurt not just investors in the funds but the financial system as a whole." Geithner reportedly said to the Senate Banking panel, "My own judgment is that the SEC needs to go further. They can go further. And we should get on with the business of letting them expose to the world, to the markets, a set of options that the world can comment on." The Journal adds, "Mr. Corker expressed concern that calls for overhauling money-market rules aren't translating into action. An SEC plan to revamp money-market rules has stalled at the agency, where SEC Chairman Mary Schapiro doesn't appear to have the votes to issue a proposal.... If the SEC doesn't move on money funds, the Financial Stability Oversight Council, a newly created council of regulators headed by the Treasury secretary, could take action, Mr. Corker argued." See also, Bloomberg's "Fidelity Joins BlackRock in Weighing Libor Action Against Banks".
