Is Treasury Unofficially Trying To Kill Money Market Funds?
See Also: Guess Which Bond Funds Got Crushed The Hardest Last Year WATCH: French “Spiderman” Climbs A Hong Kong Skyscraper With His Bare Hands The 20 Best Bond Funds Of 2010 Despite Paul Volcker’s constant (and welcome) warnings about the systemic risk posed by money market funds, it wouldn’t appear that reforming them is a major priority in Washington. However Casey Research’s David Galland (via TPC) wonders if Treasury isn’t already quietly trying to drastically shrink money market funds. Note that just this week, Treasury announced that it would no longer backstop money market funds — a backstop initially put in place after panic over the Reserve Fund’s breaking of the buck. Galland finds the removal of this support, at a time of continuing economic frailty, rather odd. And indeed in two days after that investors yanked $55 billion out of such funds. Whether that’s the start of something bigger remains to be seen. Galland brings up several important points in his report: • The Rese
Related Questions
- Will shareholders in American Funds Money Market Fund be covered by the U.S. Treasury Department s Temporary Guarantee Program for Money Market Funds?
- What does the Report say about the Treasury Guarantee Program for Money Market Funds? Will this program become permanent?
- IS THE TREASURY OUT TO KILL MONEY MARKET FUNDS?
