According to the Wall Street Journal, secretary of the U.S. Treasury, Timothy Geithner, is pressing the Financial Stability Oversight Council (FSOC) to address risks to the financial system from money market mutual funds.
Securities and Exchange Commission Chairwoman Mary Schapiro, whose agency oversees the funds, has tried and failed to get the commission to address the issue, with the industry lobbying against reform. Geithner, who heads the FSOC, sent a letter on Sept. 27 urging regulators who sit on the council to request that the SEC enact new rules for the funds. The FSOC is due to meet in a closed session Sept. 28.
Meanwhile, initial job estimates missed the addition of 386,000 jobs to the economy from March 2011 to March 2012. The revision is the result of an annual review in which the Department of Labor compares its monthly surveys to more-complete unemployment insurance tax records, Reuters reported.
The positive news countered an earlier report finding that the economy grew at a slower rate in the second quarter than previously expected. The rate of growth from April to June was revised to 1.3 percent from the previous estimate of 1.7 percent. The slower-than-expected growth was in part a reflection of the worst drought in half a century.