Former FDIC chair and current head of the Systemic Risk Council Sheila Bair has joined the outcry over the aborted attempt by the U.S. Securities and Exchange Commission to launch money market reforms, according to Barron's.

Bair's non-profit group released a statement on the failed reform attempt, declaring that Bair and her colleagues "were deeply disappointed to learn that three SEC Commissioners have refused to publish for public comment a proposed rule to reduce the systemic risk posed by money market funds."

"Given the size and scope of this risk we believe the Financial Stability Oversight Council (FSOC) — and its members — should use their individual and collective authorities to address this risk before another potentially destabilizing run," the statement said.

SEC chair Mary Schapiro had previously pushed for a number of reforms for money market funds, but surrendered due to lack of support from her fellow SEC commissioners.

The statement from Bair's group expressed support for Shapiro and lambasted her other commissioners.

“We applaud Chairman Schapiro for her leadership on this important issue, and we regret the unwillingness of a majority of the Commission to seek public comment on this vital reform. Given the current impasse at the SEC, we believe the FSOC should use the full range of authorities given it under Dodd-Frank to effectuate needed reforms," the statement continued.

To read more on the subject, go to article on the Barron's website.

 

Edited by: HFD


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