Printer Friendly

Money-Market Funds Are Weak Link (FT).

Byline: Staff Writer

Money-market funds are the weak link in the U.S. financial system, according to Financial Times columnist Gillian Tett. The funds remain vulnerable to runs despite some Securities and Exchange Commission reforms. In fact, the column claims that a U.S. government agency recently looked at what might happen to money funds if the eurozone's problems grew or some corporations defaulted on debt and "found so many funds would break the buck that the conclusions were considered too alarming to publish."

The bigger changes that the SEC has recommended--moving to a floating net asset value and requiring funds to hold some cash reserves--have met with stiff opposition from the industry, amid expectations that corporate investors would respond to such changes by moving their money to bank accounts. For the full story.

No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Treasury & Risk Breaking News
Date:Jul 31, 2012
Previous Article:Sidestepping the Risks of Corporate Debt Deals.
Next Article:U.S. Loses Case Against Citi Banker (WSJ).

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters