Federal Reserve Board’s Enhanced Supervision Standards Could Raise Significant Issues for Money Fund Sponsors

January 30, 2012
The Board of Governors of the Federal Reserve System recently proposed rules to establish certain enhanced prudential standards under the Dodd-Frank Act for large bank holding companies and nonbank financial companies that are designated as being systemically important. This update discusses the significance of one of those proposed standards — counterparty credit exposure limits — to money funds and their sponsors or advisors.