FSOC Supports Money-Fund Changes

Financial Stability Oversight Council calls for ‘structural reforms’ to reduce risk of runs.

The Financial Stability Oversight Council said it supports “the implementation of structural reforms to mitigate the run risk” in money-market funds.

“These reforms are intended to address the structural features” in funds that caused a freezing of short-term credit markets after the failure of the Reserve Primary Fund in 2008, the FSOC said in a report to Congress released today.

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