Tim Geithner may not be swooping in to rescue Mary Schapiro's money market fund proposals — at least not yet.

Peter Eavis of the New York Times' "DealBook" argues that the Financial Stability Oversight Council, which Treasury Secretary Geithner chairs, will probably move slowly to take up the SEC chair's cause of money fund reform. Speculation about FSOC action on money funds arose last week after Schapiro gave up her fight to win over enough of the other SEC commissioners for her plans to require money fund capital buffers and floating NAVs.

The Times wonders if FSOC action on the issue would be seen as "a weakening of the SEC." The paper notes that the FSOC can either designate the whole money fund industry as a systemic risk or designate specific funds or fund shops. Yet the former option would require SEC approval, which might not happen with the current slate of commissioners, and the latter might be seen as creating "an unlevel playing field," in the Times' words.

Morrison & Foerster attorney Jay Baris, Stanford finance professor Darrell Duffie, Better Markets president Dennis Kelleher and Goodwin Procter attorney Robert Kurucza all talked with the Times for the piece. 

Edited by: Neil Anderson, Managing Editor


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