Defeating Mary Schapiro's money fund reform proposals may not be total victory for money market fundsters. Andrew Ackerman and Victoria McGrane of the Wall Street Journal report that unnamed federal officials are looking into whether or not the newly created Financial Stability Oversight Council could step in if the SEC chairman's controversial money fund proposals fail.

Meanwhile, the Senate Banking Committee may hold a hearing regarding whether to tell the SEC to drop the campaign. Schapiro's proposals would limit investors' ability to exit funds during credit shocks and change how funds are priced. And Schapiro has yet to win clear support from a majority of the SEC's five commissioners. Luis Aguilar, a Democratic commissioner, has been critical of further regulation but has not made up his mind about which way to vote.

On the flip side, top Fed and Treasury officials have urged SEC officials to act, pointing out that money funds remain vulnerable while regulators no longer have the power to backstop the industry in the event of a panic a la 2008. 

Edited by: Irene Park


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