Money market funds can suspend redemption

[Presto]

If you have any money in a money market fund, you should read this article.

http://www.zerohedge.com/article/su...ec-approves-new-money-market-regulation-4-1-v

Zero Hedge discussed a month ago the disastrous prospects of what would happen if the new proposal contemplated by the SEC, which would allow the suspension of redemptions from Money Market Funds, were to pass. Well, in a nearly unanimous vote, Money Market Funds now have the ability to suspend redemptions, courtesy of the SEC's just passed 4-1 vote.

 

[ivyconniver]

Although it appears to be increased regulation of the industry, most major funds already abide by the higher standards.

Major advantage of mmkt funds is securitization. If you dont use money market funds, what do you use? $250k FDIC guaranteed checking accts? Fine, as long as you are comfortable with that, and bank deposit risk above it. If you had $500k at Lehman, you got about 300k back.