Pensions & Investments writes "Federated feels weight of rates, potential regs". The article says, "Federated Investors, the money market giant that sailed through the global financial crisis on a wave of safe-haven inflows, is facing choppier waters this year because of rock-bottom interest rates and potential changes to regulations governing money funds. The U.S. Federal Reserve Board's Aug. 9 vote to keep short-term rates between zero and 0.25% through mid-2013 was the latest rain on Federated's parade. Extremely low interest rates have left Federated waiving millions of dollars of fees on its money market funds -- which accounted for 76% of the firm's assets under management as of June 30 and almost half of its revenue -- to ensure a positive return for investors. In a recent interview, Christopher Donahue, president and CEO of Pittsburgh-based Federated, conceded the Federal Reserve's recent pledge to keep rates low for another few years was 'not exactly a positive.' But he said the tough environment will pressure a growing number of smaller money market competitors to 'throw in the towel,' opening up continued 'roll-up and acquisition opportunities' for Federated."
