Treasury Secretary Timothy Geithner says the $2.7T money-market-fund industry is “susceptible to...

|By:, SA News Editor

Treasury Secretary Timothy Geithner says the $2.7T money-market-fund industry is “susceptible to runs and can be a source of financial instability,” so he's putting pressure on opponents of new regulations by urging a super-council of federal regulators be created to give some teeth to the proposed new rules. In a letter to regulators, Geithner suggests that in the event the SEC doesn’t act, the council should work in parallel to take “active steps” to impose greater regulation of the industry themselves.