(Bloomberg) -- Asset managers trying to forestall stricter U.S. oversight appear to have found an ally in the chairman of the Securities and Exchange Commission.
SEC Chair Mary Jo White took up their arguments yesterday, lending support to firms including BlackRock Inc. and Fidelity Investments which are fighting efforts to officially label them sources of “systemic risk” to the financial system.
The council is justified in examining whether asset managers create or spread risk that the SEC hasn’t adequately addressed, said Jeffrey N. Gordon, co-director of the Richman Center for Business, Law and Public Policy at Columbia Law School. The SEC still hasn’t adopted, for instance, new rules to address the role money-market mutual funds played in accelerating the 2008 credit crisis.
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