Bloomberg writes "SEC Deadlock on Money Funds May Prompt FSOC Intervention". The article says, "Divisions at the U.S. Securities and Exchange Commission could prompt a panel of regulators from other agencies to intervene in a debate over strengthening rules governing the $2.6 trillion money-market fund industry, three people familiar with the situation said. If the SEC is unable to reach agreement, the Financial Stability Oversight Council, established by the 2010 Dodd-Frank Act to monitor large risks to the economy, may decide to officially designate money funds as "systemically important." That would increase pressure on the SEC to overcome industry opposition and internal disagreements to propose new rules." The piece adds, "The FSOC could intervene into the money-market debate in one of two ways -- by declaring the industry's activities systemically important or by designating individual funds as a systemic risk. If the FSOC declared the sector as risky, the SEC would have to either propose rules or explain why it is unable to do so." In other news, ICI's latest "Money Market Mutual Fund Assets says, "Total money market mutual fund assets decreased by $6.15 billion to $2.584 trillion for the week ended Wednesday, April 11, the Investment Company Institute reported today. Taxable government funds decreased by $3.28 billion, taxable non-government funds increased by $40 million, and tax-exempt funds decreased by $2.91 billion."
