Matches in SemOpenAlex for { <https://semopenalex.org/work/W3124025801> ?p ?o ?g. }
Showing items 1 to 73 of
73
with 100 items per page.
- W3124025801 abstract "Since the 2008 financial crisis, in which the Reserve Primary Fund broke the buck, money market funds (MMFs) have been the subject of ongoing policy debate. Many commentators view MMFs as a key contributor to the crisis because widespread redemption demands during the days following the Lehman bankruptcy contributed to a freeze in the credit markets. In response, MMFs were deemed a component of the nefarious shadow banking industry and targeted for regulatory reform. The Securities and Exchange Commission's (SEC) misguided 2014 reforms responded by potentially exacerbating MMF fragility while potentially crippling large segments of the MMF industry. Determining the appropriate approach to MMF reform has been difficult. Banks regulators supported requiring MMFs to trade at a floating net asset value (NAV) rather than a stable $1 share price. By definition, a floating NAV prevents MMFs from breaking the buck but is unlikely to eliminate the risk of large redemptions in a time of crisis. Other reform proposals have similar shortcomings. More fundamentally, the SEC's reforms may substantially reduce the utility of MMFs for many investors, which could, in turn, affect the availability of short term credit. The shape of MMF reform has been influenced by a turf war among regulators as the SEC has battled with bank regulators both about the need for additional reforms and about the structure and timing of those reforms. Bank regulators have been influential in shaping the terms of the debate by using banking rhetoric to frame the narrative of MMF fragility. This rhetoric masks a critical difference between banks and MMFs' asset segregation. Unlike banks, MMF sponsors have assets and operations that are separate from the assets of the MMF itself. This difference has caused the SEC to mistake sponsor support as a weakness rather than a key stability-enhancing feature. As a result, the SEC mistakenly adopted reforms that burden sponsor support instead of encouraging it. As this article explains, required sponsor support offers a novel and simple regulatory solution to MMF fragility. Accordingly this article proposes that the SEC require MMF sponsors explicitly to guarantee the $1 share price. Taking sponsor support out of the shadows embraces rather than ignores the advantage that MMFs offer over banks through asset partitioning. At the same time, sponsor support harnesses market discipline as a constraint against MMF risktaking and moral hazard." @default.
- W3124025801 created "2021-02-01" @default.
- W3124025801 creator A5043462003 @default.
- W3124025801 date "2014-01-01" @default.
- W3124025801 modified "2023-09-27" @default.
- W3124025801 title "The broken buck stops here: Embracing sponsor support in money market fund reform" @default.
- W3124025801 hasPublicationYear "2014" @default.
- W3124025801 type Work @default.
- W3124025801 sameAs 3124025801 @default.
- W3124025801 citedByCount "0" @default.
- W3124025801 crossrefType "posted-content" @default.
- W3124025801 hasAuthorship W3124025801A5043462003 @default.
- W3124025801 hasConcept C10138342 @default.
- W3124025801 hasConcept C1370556 @default.
- W3124025801 hasConcept C138885662 @default.
- W3124025801 hasConcept C139719470 @default.
- W3124025801 hasConcept C144133560 @default.
- W3124025801 hasConcept C144587487 @default.
- W3124025801 hasConcept C162324750 @default.
- W3124025801 hasConcept C2776034101 @default.
- W3124025801 hasConcept C2777351259 @default.
- W3124025801 hasConcept C2778300220 @default.
- W3124025801 hasConcept C2781251770 @default.
- W3124025801 hasConcept C2781332510 @default.
- W3124025801 hasConcept C34447519 @default.
- W3124025801 hasConcept C41895202 @default.
- W3124025801 hasConcept C504631918 @default.
- W3124025801 hasConcept C556758197 @default.
- W3124025801 hasConcept C73283319 @default.
- W3124025801 hasConceptScore W3124025801C10138342 @default.
- W3124025801 hasConceptScore W3124025801C1370556 @default.
- W3124025801 hasConceptScore W3124025801C138885662 @default.
- W3124025801 hasConceptScore W3124025801C139719470 @default.
- W3124025801 hasConceptScore W3124025801C144133560 @default.
- W3124025801 hasConceptScore W3124025801C144587487 @default.
- W3124025801 hasConceptScore W3124025801C162324750 @default.
- W3124025801 hasConceptScore W3124025801C2776034101 @default.
- W3124025801 hasConceptScore W3124025801C2777351259 @default.
- W3124025801 hasConceptScore W3124025801C2778300220 @default.
- W3124025801 hasConceptScore W3124025801C2781251770 @default.
- W3124025801 hasConceptScore W3124025801C2781332510 @default.
- W3124025801 hasConceptScore W3124025801C34447519 @default.
- W3124025801 hasConceptScore W3124025801C41895202 @default.
- W3124025801 hasConceptScore W3124025801C504631918 @default.
- W3124025801 hasConceptScore W3124025801C556758197 @default.
- W3124025801 hasConceptScore W3124025801C73283319 @default.
- W3124025801 hasLocation W31240258011 @default.
- W3124025801 hasOpenAccess W3124025801 @default.
- W3124025801 hasPrimaryLocation W31240258011 @default.
- W3124025801 hasRelatedWork W129476622 @default.
- W3124025801 hasRelatedWork W1480149187 @default.
- W3124025801 hasRelatedWork W1491132950 @default.
- W3124025801 hasRelatedWork W1556880304 @default.
- W3124025801 hasRelatedWork W1910540293 @default.
- W3124025801 hasRelatedWork W1959060696 @default.
- W3124025801 hasRelatedWork W2154990345 @default.
- W3124025801 hasRelatedWork W2165199081 @default.
- W3124025801 hasRelatedWork W2171415303 @default.
- W3124025801 hasRelatedWork W2177091344 @default.
- W3124025801 hasRelatedWork W2270996926 @default.
- W3124025801 hasRelatedWork W2502287295 @default.
- W3124025801 hasRelatedWork W2601067604 @default.
- W3124025801 hasRelatedWork W3095768092 @default.
- W3124025801 hasRelatedWork W3121787706 @default.
- W3124025801 hasRelatedWork W3124483548 @default.
- W3124025801 hasRelatedWork W3125061022 @default.
- W3124025801 hasRelatedWork W3125104090 @default.
- W3124025801 hasRelatedWork W3126087887 @default.
- W3124025801 hasRelatedWork W2147063291 @default.
- W3124025801 isParatext "false" @default.
- W3124025801 isRetracted "false" @default.
- W3124025801 magId "3124025801" @default.
- W3124025801 workType "article" @default.