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Fund Companies Propose Compromise To Improve Safety Of Money Market Funds

Saturday, October 27, 2012 - 6:29 AM
From Reuters
Officials from BlackRock Inc, Fidelity Investments and other mutual fund operators are meeting Friday with U.S. regulators to discuss a potential compromise for reform of the $2.5 trillion money market industry.

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1
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Saturday, October 27, 2012 - 9:19 AM
"The industry proposal appeared to focus on giving funds the ability to discourage withdrawals during times of crisis. Recently, BlackRock publicly proposed a plan to charge investors an extra fee to withdraw their money whenever a fund was under stress, discouraging hasty departures. And the fee would go back into the fund, encouraging others to stay put."

I wonder how many banks and credit unions would like that put into their disclosures/agreements for deposit accounts?
2
ShorebreakShorebreak2,622 posts since
Apr 6, 2010
Rep Points: 14,216
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