WASHINGTON, Nov 8 (Reuters) - The council of U.S. regulators will meet on Tuesday to discuss reforms for the $2.5 trillion money market industry, the U.S. Treasury said on Thursday, despite deep objections from some of the biggest money funds and influential business lobby.
It was not clear whether the Financial Stability Oversight Council would issue a formal proposal to reform the industry next week. But council chairman, Treasury Secretary Timothy Geithner, has been adamant that the group use its authority to ensure that new protections are added.
The industry’s primary regulator, the Securities and Exchange Commission, failed to win enough internal support to advance reforms earlier this year.
The council, which was established to mitigate risks in the financial system, has the power to impose its own set of rules on certain funds. However, that is not the Treasury Department’s first choice.
Geithner has said he wants the council to consider alternatives including naming some firms as “systemically important” and imposing capital surcharges on banks that sponsor money funds.