Measuring money... faster, cheaper, cleaner
Crane 100 Money Fund Index
The American Enterprise Institute (AEI)
will host a seminar entitled, "Do money market funds create systemic risk?
" on Thursday, June 28 at 2pm. The description says, "Following the bankruptcy of Lehman Brothers in September 2008, one primary money market fund (MMF) "broke the buck" and set off a run on other similar funds
. The U.S. Treasury
temporarily insured MMFs to stem redemptions. In January 2010, the SEC changed the regulations governing MMFs to provide for more liquidity and disclosure of the potential risks associated with MMF investments
. Still, recent speeches by Federal Reserve
officials have suggested more needs to be done and carried the veiled threat that, if the SEC does not take the necessary actions, the Financial Stability Oversight Council
may find that some funds threaten the stability of the U.
S. financial system and place them, along with other large financial firms, under Fed supervision and regulation. This discussion will consider whether MMFs require some capital backing and are suitable candidates for SIFI treatment." The seminar will be moderated by AEI'
s Peter Wallison
and will feature Melanie Fein
of the Fein Law Office, as well as panelists Jeffrey Gordon
of Columbia University, Edward Greene of Cleary Gottlieb Steen & Hamilton, and Paul Stevens
of the Investment Company Institute