As established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 the Financial Stability Oversight Council (FSOC) provides for the first time comprehensive monitoring to ensure the stability of our nation’s financial system. The council is charged with identifying threats to the financial stability of the United States, promoting market discipline, and responding to emerging risks to the stability of the U.S. financial system.

Money Market Mutual Funds (MMMF) and the FSOC: On August 22, SEC Chairman Mary Shapiro announced that she did have not the necessary votes to move forward with a proposal to reform money market funds and pointed to FSOC to propose and implement reforms. FSOC could take one of two paths to reform MMMFs.