On Wednesday, the Securities and Exchange Commission proposed several reforms to money market funds. Changes to money market funds has been in the works since 2008 after the Reserve Primary Fund “broke the buck” at the height of the financial crisis. The SEC published two proposals. Under the first alternative, prime institutional money market funds … Read more »
Tag: Transaction Account Guarantee
Extension of TAG
One of the many scary events in 2008 was that money had nowhere safe to go. The failure of the Reserve Fund meant cash was not safe and the banks were teetering, leaving corporate treasuries with no place to safely park the cash they would need to weather the financial crisis. Congress stepped in and … Read more »
Transaction Account Guarantee program and Risk Management
The Transaction Account Guarantee program was originally launched in 2008 by the Federal Deposit Insurance Corp. to help banks hold on to liquidity. The program gives unlimited federal guarantees to zero-interest bank deposits. This allows companies to park cash and not worry about the bank failure. Given the current low interest environment, giving up the … Read more »