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Reuters said a bipartisan group of former securities regulators are urging the Financial Stability Oversight Council to back off plans to push the Securities and Exchange Commission to adopt new money market fund regulations.

The Dodd-Frank Act authorizes the FSOC, which is chaired by the Treasury secretary, to recommend rules to the SEC, and it's up to the SEC to adopt or reject them, the report said. The rules being presented are similar to a proposal by former SEC Chairman Mary Shapiro that died for lack of support among commission members.

NAFCU President and CEO Fred Becker, in an official comment letter, told the FSOC earlier this month that the council should work to ensure that its money market fund reform efforts "do not create market uncertainty."

Becker said credit unions' investment authority is "very limited," but the institutions "depend on robust securities markets to ensure they have the liquidity necessary to lend." The issue is particularly important given that mutual funds underlie a significant portions of securities issued by Fannie Mae and Freddie Mac.

• "Ex-SEC officials to U.S. risk council: Back off on money funds,", Reuters, 2/21