Treasury Secretary Timothy F. Geithner laid out a plan yesterday that aims to push a federal agency into more tightly regulating the money-market fund industry, the Washington Post reported today. The plan calls on a relatively new body of regulators — the Financial Stability Oversight Council — to come up with overhaul options, offer them to the public for comment and present a final recommendation to the Securities and Exchange Commission. The SEC must adopt the recommendation or else explain to FSOC why it will not, Geithner wrote in a letter to the 15-member council, which was created in 2010 by the Dodd-Frank bill that retooled financial regulatory laws. Geithner — who heads the council, which is made up of top financial regulators and includes the SEC — said his staff is drafting a proposal that could be unveiled in November.
