Subcommittee Chairman Scott Garrett opening the hearing with an announcement that the scope of the hearing would be expanded from the original focus of money market funds to included the SEC’s handling of their cost/benefits studies in the rule making process. SEC Chairwoman Mary Shapiro had recently announced new cost/benefit study guidance that was to dominate the hearing’s discussions.
“Is the new guidance binding ? asked Chairman Garrett. “Yes”, replied Chairwoman Shapiro but only to the extent that it was being followed by SEC personnel. She added that she did not believe the guidance had to be approved by the SEC Board.