Investment Week (April 21)
“Following the collapse of Silicon Valley Bank and other US regional banks, as well as the turmoil around Credit Suisse, the banking sector has sat on wobbly ground in investors’ minds.” Depositors have “moved into treasuries and money market funds to avoid the risk that their bank could be next to fall.” As a result, the S&P Banks Select Industry index dropped 22.5% during March.
Tags: Banking sector, Collapse, Credit Suisse, Depositors, Investors, Money market funds, Regional banks, Risk, SVB, Treasuries, Turmoil, U.S., Wobbly
Wall Street Journal (October 2)
Reform of money market funds seemed to grind to a halt last month when a draft rule was blocked by the Securities Exchange Commission. Now Commissioner Gallagher is indicating that “he favors giving investors accurate prices in real time.” That would provide Chairman Mary Schapiro with the votes she need. Rather than fight this reform, “the industry would be wise to work with Mr. Gallagher and Ms. Schapiro on a floating net-asset-value before it suffers a worse fate.”
Reform of money market funds seemed to grind to a halt last month when a draft rule was blocked by the Securities Exchange Commission. Now Commissioner Gallagher is indicating that “he favors giving investors accurate prices in real time.” That would provide Chairman Mary Schapiro with the votes she need. Rather than fight this reform, “the industry would be wise to work with Mr. Gallagher and Ms. Schapiro on a floating net-asset-value before it suffers a worse fate.”
