Northern, TBS Partner on FDIC Sweeps
A press release entitled, "Northern Trust and Total Bank Solutions Collaborate to Provide Extended FDIC Insurance for Cash Sweeps," says, "Today Northern Trust and Total Bank Solutions (TBS) announced the immediate availability of the Insured Deposit Program, providing clients the benefit of extended FDIC insurance, daily liquidity, a diversified source of stable funding and the opportunity for improved returns. "We are very excited to be able to offer a compelling alternative for investors who require principal protection, same-day liquidity and operational convenience for their cash. We believe the combination of our proprietary technology platform and large bank network with Northern Trust's legacy of strong client-service and innovative custodial services will set the industry standard for Insured Deposit Programs," said Kevin Bannerton, Managing Director of TBS. Northern Trust and TBS will be at the American Bankers Association annual conference today to officially launch the program.... "We are pleased to offer our clients the ability to maximize their returns while having the security of extended FDIC insurance coverage and daily liquidity with the Insured Deposit Program," said Pete Cherecwich, Americas head of Corporate & Institutional Services at Northern Trust. "The strength and stability of our custody offering combined with our extensive cash management expertise makes this a significant value-add." The Northern Trust and TBS supported Insured Deposit Program is available immediately with plans for integration to be completed across most major trust platforms beginning in April 2016.... Leveraging proprietary technology, TBS' FDIC Insured Deposit Program, currently with over $30 billion in assets under administration, is designed to provide their clients with the benefit of extended FDIC insurance and for participating banks, a stable, diversified and cost-effective source of deposit funding." In other news, the Cato Institute posted a strange blog entry entitled, "Money-Market Mutual Funds: Restrictions, Run-Proofing, and Regulatory Pretense." Author Lawrence White writes, "Many regulators and economic analysts have inferred from these events that money-market mutual funds (MMMFs) are inherently run-prone. The fact that this was the first run in MMMF history, however, should give us pause. There is a more plausible reading of the evidence."
