Reuters writes "House panel probes risk council role in SEC money fund rule". The article says, "A House of Representatives Republican who oversees an investigative committee said on Friday the new U.S. systemic risk council overstepped its authority with an attempt to push through rules to rein in the $2.6 trillion money market fund industry. Making those rules was the responsibility of the Securities and Exchange Commission, which is supposed to be independent, said House Oversight Committee Chairman Darrell Issa. He released excerpts of documents showing that internal SEC draft rules contained what he called inappropriate input from staffers of the Federal Reserve, which serves with the SEC on the risk council, also known as the Financial Stability Oversight Council (FSOC).... "Lawmakers are concerned that the risk council "may be structured and operating in a manner that vitiates the independence and core competence of the council's constituent regulatory bodies," wrote Issa and Ohio Republican Jim Jordan, who chairs a subcommittee of the oversight panel. Issa also released an 11-page letter he sent July 10 to SEC Chairwoman Mary Jo White and several other members of FSOC demanding additional records. The letter accuses the office of former SEC Chair Mary Schapiro of "surreptitiously" cloaking its opinions and advocacy for money fund rules."
