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NAFCU President and CEO Fred Becker told the Financial Stability Oversight Council Thursday that credit unions have an interest in ensuring their members' assets are safely invested, and that the panel should work to ensure its money-market mutual fund reform efforts "do not create market uncertainty."

In a comment letter to the FSOC about its proposed money-market mutual fund reform alternatives, Becker pointed out that credit unions' investment authority is "very limited," but that they "depend on robust securities markets to ensure they have the liquidity necessary to lend."

While none of the money-market mutual fund reform alternatives would have a direct impact on credit unions, the FSOC should avoid causing any market uncertainties, Becker said. This is especially important given that mutual funds "finance a significant portion of Fannie Mae- and Freddie Mac- issued securities."

• Comment letter