Abstract

http://ssrn.com/abstract=2195358
 
 

References (22)



 
 

Footnotes (6)



 


 



Broken Bucks: Money Funds that Took Taxpayer Guarantees in 2008


Linus Wilson


University of Louisiana at Lafayette - College of Business Administration

August 28, 2015


Abstract:     
This is the first study to look at the characteristics of funds accepting the $2.7 trillion taxpayer guarantee of money market mutual funds during the 2008 financial crisis. Funds with lower asset maturities were significantly less likely to need federal or sponsor bailouts. 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. Finally, the paper tests if funds adhering to the SEC’s 2010 liquidity reforms prior to their enactment were less likely to be bailed out in 2008.

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


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Date posted: January 2, 2013 ; Last revised: August 29, 2015

Suggested Citation

Wilson, Linus, Broken Bucks: Money Funds that Took Taxpayer Guarantees in 2008 (August 28, 2015). 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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