Pensions & Investments writes "Crisis aftershocks to hit cash management", which says, "Cash management -- long a sleepy money management backwater -- might undergo some of the most sweeping changes in the industry because of this year's unprecedented capital markets volatility. In a year where money managers have had to spend billions of dollars propping up 'safe, boring' money market and securities-lending collateral vehicles, there has been a 'fundamental change in how people think about cash,' said Barbara Novick, vice chairman, BlackRock Inc.." It adds, "Some observers downplay that prospect. There'll be some consolidation as part of broader trends in the financial services industry, but no big wave, said Peter G. Crane, the president and chief executive officer of Crane Data LLC, a Westboro, Mass.-based company that tracks the money market sector. With money fund assets at a record $3.7 trillion in November, any shakeout would be more on the order of one in 10 managers leaving the scene, not five in 10." Also, see the "Federal Reserve's "Joint Statement by Treasury, Federal Reserve, and the FDIC on Citigroup". Finally, see Bloomberg's "Treasury Traders Paid to Borrow as Fed Examines Repos", which discusses the push to fix the "fails" in the Treasury repurchase agreement market.
