The Derivative Project

Money Market Mutual Funds

Kudos Charles Schwab: Leadership on Money Market Reform

Kudos Charles Schwab: Leadership on Money Market Reform

Systemic Risk, High Fees and Voluntary Recapture in Money Market Funds Unbeknownst to most retirement investors, a quiet war has been waged between the broker-dealer industry and the Department of Treasury Financial Stability Oversight Council (FSOC) over money market mutual funds. The issue is the systemic risk money market mutual…

Money Markets:  Suspend, File and Charge the Investor for Low Interest Rates

Money Markets: Suspend, File and Charge the Investor for Low Interest Rates

Moody’s actually did the unthinkable this week, with hardly a whisper.  They downgraded the money market mutual fund industry to negative.  Reuters covered it, hardly anyone else did – “Moody’s slaps negative outlook on U.S. Money Sector.”  Can’t have too much transparency for the retail investor.  They still think money market…

Washington Post Op-Ed – Are Democrats Moving Away From Wall Street?

Here is a most interesting Op-Ed from the Washington Post today, Fed Up With Wall Street, the Democrats Look to the Left.  As writer, Harold Meyerson states:   “The revolt against Summers was less about his positions on today’s economic issues than his adamant opposition to regulating derivatives during his tenure…

Retirement Investors: A Huge Reason to Ditch Money Market Funds Now

We have written in previous Blog Posts about the concept of “voluntary recapture.”  Well, look out it is coming!  Time to protect your .01% money market yield, from the fees that money market funds believe they deserve for babysitting your cash. September 3, 2012 Blog Post:  Attention Retirement Savers:  Time…

Regulatory Capture and the Critical Role of “Poverty Stricken” Consumer Advocates

The Project on Government Oversight (POGO) held a debate on their excellent recent report on the revolving door, “Dangerous Liaisons” at the SEC last week, in New York City.  At this Debate, Susan Antilla, journalist and columnist for Bloomberg, Highlighted Plight of “poverty stricken consumer advocates.” “If you look at the rulemaking information that the…

They Doth Protest Too Much: FSOC, Don’t Be Bullied By Federated’s Threat of Subversion

Reader Note:  This is a repost of a February 1, 2013 The Derivative Project Blog Post that was inadvertently deleted. Federated Investors, the third largest money market mutual fund company has a lot to lose if the FSOC follows through on their proposals to limit systemic risk that money market…

“Dangerous Liaisons”: How They are Harming the Retail Investor

The Project on Government Oversight, “POGO”  released a report today, “Dangerous Liaisons: The SEC Revolving Door”.   The report states:  “A revolving door blurs the lines between one of the nation’s most important regulatory agencies and the interests it regulates. Former employees of the Securities and Exchange Commission (SEC) routinely…

Investors, Who Should You Believe About Money Market Reform: Wall Street or Economists and Commercial Banks

Wall Street vs Commercial Banks There is a war going on out there and most investors have no idea, yet Wall Street is insisting they know what is best for every investor.  No surprise, what is in the “investor’s best interest” is in Wall Street’s best interest.  Has your financial…

Wall Street’s “Investor Advocate” Misrepresents Money Market Reform

The issue of money market reform is a crucial issue for our nation’s financial system.  The problem is now exacerbated by articles by Wall Street, presenting information that is not factual and distorting the issues to benefit the securities industry.  This is no more evident than this shocking “Commentary” published…

Geithner Steps Up Action on Money Fund Reform: Will the SEC Investor Advisory Committee Take Emergency Action to Protect the Retail Investor?

The Derivative Project submitted a request to SEC Chair Shapiro and a request for Discussion today to the Investor Advisory Committee to consider the misrepresentation by the money market fund industry to retirement investors. Money market funds now present significant systemic risk, as presented by the Federal Reserve Bank of…