Abstract

http://ssrn.com/abstract=2195358
 
 

References (22)



 
 

Footnotes (6)



 


 



Will the SEC's 2010 Reforms Prevent Another $2.7 Trillion Bailout of Money Funds?


Linus Wilson


University of Louisiana at Lafayette - College of Business Administration

December 31, 2012


Abstract:     
This is the only study of the $2.7 trillion taxpayer guarantee of money market mutual funds during the 2008 financial crisis. Funds that were in 2008 adhering to the increased liquidity requirements for money funds imposed by the Securities and Exchange Commission (SEC) in 2010, were generally no less likely to get taxpayer or sponsor bailouts during the financial crisis. Yet, funds with lower asset maturities were significantly less likely to need federal or sponsor assistance. Fund shares that benefited from Federal Reserve’s asset-backed commercial paper program were significantly more likely to get bailed out by taxpayers and sponsors.

Number of Pages in PDF File: 42

Keywords: breaking the buck, bailout, Dodd-Frank, DLA, exchange rate stabilization fund, Financial Stability Oversight Council (FSOC), guarantees, liquidity, money market mutual funds, Primary Reserve Fund, regulation, SEC, Securities and Exchange Commission, U.S. Treasury, WAL, WAM, WLA

JEL Classification: G01, G18, G22, G23, G28, H12, H81, L5

working papers series


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Date posted: January 2, 2013  

Suggested Citation

Wilson, Linus, Will the SEC's 2010 Reforms Prevent Another $2.7 Trillion Bailout of Money Funds? (December 31, 2012). Available at SSRN: http://ssrn.com/abstract=2195358 or http://dx.doi.org/10.2139/ssrn.2195358

Contact Information

Linus Wilson (Contact Author)
University of Louisiana at Lafayette - College of Business Administration ( email )
Department of Economics & Finance
214 Hebrard Blvd., Room 326
Lafayette, LA 70504-0200
United States
(337) 482-6209 (Phone)
(337) 482-6675 (Fax)
HOME PAGE: http://www.linuswilson.com
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References:  22
Footnotes:  6

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