MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, June 3, 2011 Should the FDIC Cover Money Fund Investors? Fundsters interested in the future of the money market mutual fund industry may want to take a look at the "Investing in Funds" special monthly report in today's edition of the Wall Street Journal. Karen Damato introduces a debate between two professors, Jeffrey Gordon of Columbia and Jonathan Macey of Yale. Despite coming down on opposite sides of the "Should Investors Worry About Money Funds?" question, both guest columnists agree on one thing: extending deposit insurance to retail money fund investors. Gordon attacks the money fund industry as both prone to runs itself and as prone to triggering runs in the markets its invests in. In addition to giving FDIC coverage to retail money fund investors, he advocates having institutional money fund investors to pay for any kind of fixed net asset value. Macey, on the other hand, thinks FDIC coverage should extend to all money fund accounts, both retail and institutional, with limitations only on how much it covers (say, the $250,000, like in bank accounts). Printed from: MFWire.com/story.asp?s=36967 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |