Measuring money... faster, cheaper, cleaner
Crane 100 Money Fund Index
The Wall Street Journal writes "Money Funds to Benefit From Bank Outflow"
. It says, "Managers of U.S. money-market funds are expecting an influx of cash between now and year-end as customers brace for the end of a program that covers their deposits in case their bank goes under
. Starting in 2008, after the collapse of Lehman Brothers hit investor confidence, the government began guaranteeing an unlimited amount of non-
bearing deposits at banks. But that program, now called the Dodd-Frank Deposit Insurance Provision, is set to expire at the end of the year
. The limit is expected to be reset to $
000 per account. About $
6 trillion now sitting in those deposit accounts could be looking for a new home in the coming months. Industry analysts say the bulk of this newly uninsured cash will be routed into safe-haven Treasurys or money-market funds -- places that aren't quite as flexible as checking accounts but would at least offer a slight return." In other news, see `Bloomberg's "Money Fund Dealmaking Resumes After Geithner Breaks Logjam"
, which says, "One month ago, a U.S. Securities and Exchange Commission proposal to tighten rules for the $2.6 trillion money-market mutual fund industry was declared dead. Now, it's coming back to life
. The revival was sparked by Treasury Secretary Timothy F. Geithner, who added fuel to a new round of dealmaking among regulators, funds and banks when he used the 2010 Dodd-
Frank Act to force the issue back onto the SEC'
s agenda." See also, WSJ's "Money-Fund Curbs Test Council's Mettle"
and Bloomberg Businessweek's "The Money Market Fund Death Match, Part II"