Thank you. I am honored to be here rejoining the Financial Stability Oversight Council meeting, today for the first time as Chair of the Securities and Exchange Commission. I believe in this Council’s mission to identify and respond to financial stability risks and to better promote market discipline. Financial stability is also a part of my remit as Chair of the SEC. 

Last spring, we witnessed system-wide issues affecting critical parts of our short-term funding markets, including money market funds, commercial paper, and the treasury repo markets. We also saw challenges in the treasury repo markets in the fall of 2019.

Let me turn to money market funds, which are an important part of our markets and source of wholesale funding for many issuers. The SEC sought to address structural issues in these funds in reforms adopted in 2010 and 2014. Based on the events of last spring, the SEC, this Council, and the President’s Working Group have engaged in a review of how we can make further progress to enhance the resiliency of these funds.

The events brought particular focus to prime money market funds, and their interrelationship with investments in commercial paper and certificates of deposit. CP and CD have limited liquidity in good times, and in critical weeks of stress last spring, virtually disappeared.

It’s important to ensure the resiliency of money market funds.

I am directing SEC staff to look into these issues, in coordination with other federal agencies, and to consider any further reforms needed. Thank you.