Friday, 29 July 2016
Last updated 8 hours ago
May 23 2014 | 12:42pm ET
The U.S. Treasury Department says that hedge funds are overreacting to the possibility that some might be deemed systemically important. The head of the Securities and Exchange Commission isn’t so sure.
Mary Jo White told a mutual-fund conference in Washington yesterday that she doesn’t “think you’re overreacting to the process. The issues here are enormously important, I mean, on every side.”
White’s words come as the Financial Stability Oversight Council mulls whether any non-bank or insurance financial institutions should be designated systemically important. Such a finding would put them under the oversight of the Federal Reserve.
Earlier this week, the Treasury’s Mary Miller said there has been “a bit of an overreaction” on the part of asset managers, and that it is “certainly an option” that none will be designated.