Here we go again: money market fund reform is back in play, and in a big way.

Bloomberg reports that during the Financial Stability Oversight Council meeting yesterday, a draft was unanimously approved suggesting three ways for the SEC to overhaul the money market industry.

According to the report, one option was to require as much as 3 percent of assets as capital buffers. Other two solutions were the ones opposed months ago by the $2.6 trillion industry.

You can read the draft statement here.

These recommendations sparked new opposition from the money market industry. Paul Schott Stevens, Investment Company Institute president, said, "The Council apparently is proposing to send back to the SEC the very same concepts that a majority of the commission’s members declined to issue for public comment in August."

The draft would "keep the pressure on the SEC to do something," said Peter Crane of Crane Data LLC.

The US Chamber of Commerce's Center for Capital Markets released a statement decrying the move, with president David Hirschmann saying "the FSOC is repeating the SEC’s same flawed process by outlining proposals that would tear down a vital source of financing for American companies, cities and states." This news was covered in a variety of other places, including the New York Times and the Associated Press.  

Edited by: HFD


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