Sheila Bair, chair of the Systemic Risk Council, released the statement below following the SEC’s meeting on Wednesday, July 23: “I know this has been a difficult issue for the SEC, and I commend Chairman Mary Jo White for her strong leadership in guiding the agency to final rulemaking. I also applaud the SEC for […]
Publication: New York Times Author: Floyd Norris 9/19/2013 —Bank regulators around the world are forcing banks to hold more capital than they did before the financial crisis revealed just how inadequate their capital truly was. But one set of American banks appears to be on the verge of keeping the right to have no capital at all. […]
Publication: Bloomberg Author: Dave Michaels 9/18/2013 —Money-market mutual fund providers and the municipalities and corporations relying on them to manage cash are telling U.S. House lawmakers to be wary of new regulation for the $2.6 trillion industry. The groups are using a House Financial Services panel’s hearing in Washington today to kick off a lobbying campaign against a Securities […]
On September 18, Systemic Risk Council chair Sheila Bair testified before the House Financial Services subcommittee on Capital Markets and Government Sponsored Enterprises about money market fund reforms. The full testimony is below: Sheila Bair Testimony House Financial Services Sep 18 13
Systemic Risk Council September 16, 2013 Dear Commission: The Systemic Risk Council is writing to recommend that the Commission strengthen its proposed money market fund reforms and put in place a final rule that will fully address the destabilizing risks created by the stable NAV accounting fiction and so-called “penny rounding”. As we have noted […]
Publication: Bloomberg Author: Dave Michaels and Christopher Condon 9/05/2013 —A year ago, when opposition from the asset-management industry killed her plan to make money-market mutual funds safer, U.S. Securities and Exchange Commission Chairman Mary Schapiro looked to Timothy Geithner, then the Treasury Secretary, to tackle “one of the pieces of unfinished business from the financial crisis.” It […]
Publication: New York Times Author: Diana Henriques 4/06/2013 —This is the kind of market that makes cautious investors long for the comfort of cash. Stocks? They seem a little frothy. Bonds? Ugh — low rates, inflation worries. Real estate? Still a hard sell. For decades, investors have waited out financial fogs like these in the haven of money […]
Systemic Risk Council January 18, 2013 Dear Financial Stability Oversight Council: The Systemic Risk Council (SRC) is writing to commend and support the FSOC for seeking public comment on proposals to reform money market funds. It has been more than four years of study since taxpayers were forced to guarantee money market funds and the […]
Publication: New York Times Author: Edward Wyatt 11/13/2012 – WASHINGTON — A council of top financial regulators, upset with the Securities and Exchange Commission for failing to strengthen rules governing money market mutual funds since the financial crisis, is trying to force the S.E.C. to adopt stricter regulations. The Financial Stability Oversight Council, a group of 10 regulators that includes the S.E.C. chairwoman, […]
Publication: Reuters Author: Ross Kerber 11/01/2012– Former financial regulator Sheila Bair voiced worries about a new industry compromise plan for money market mutual funds, including implementing a fee for withdrawals during times of stress, saying it could worsen a crisis. Fund companies met with regulators last week in Washington, hoping they would accept limited new rules for stabilizing the funds if necessary. But Bair […]