The mutual fund industry is taking issue with a House bill that would permit the Federal Reserve to step in to regulate large funds that pose “a grave threat to the financial stability or economy of the U.S.”
The House passed the bill, H.R. 4173, “The Wall Street Reform and Consumer Protection Act of 2009,” last month. Title I, the “Financial Stability Improvement Act,” would grant the additional power to the Fed. It would also require financial companies or individual mutual funds with more than $50 billion in assets to contribute to a government insurance fund.