What Money Market Mutual Fund Reform Means for Banks And Money Market Deposit Accounts

Authors

Carlton B. Price IV

Abstract

This Note considers the impact that the Reform will have on the financial products industry, and specifically, on banks that offer money market deposit accounts ("MMDA"), which are direct competitors of money market mutual funds ("MMMF"). Part II provides a background on MMMFs and the "breaking the buck" phenomenon. Part III addresses attempts to decrease the riskiness of MMMFs in the wake of the 2008 financial crisis and the "breaking of the buck" event in September 2008. Part IV details the requirements of the Reform and the issues discussed by commenters to the Proposed Rule. Part V analyzes the costs and opportunities that the Reform will present to banks that provide MMDAs. Part VI concludes by offering some final thoughts on the future of MMMFs.

First Page

243

Recommended Citation

Carlton B. Price IV, What Money Market Mutual Fund Reform Means for Banks And Money Market Deposit Accounts, 19 N.C. Banking Inst. 243 (2015).
Available at: https://scholarship.law.unc.edu/ncbi/vol19/iss1/14