Skip to main content

Newsroom

July 24, 2013

Money market funds pose risk during crisis

Five years after the devastating events of the financial crisis, many of the most vulnerable parts of the financial system remain susceptible to problems like those seen in 2008.

“‘The money market fund industry and the repo market is really the major fault line that goes right under Wall Street,’ says Dennis Kelleher, president and CEO of Better Markets, a nonprofit, nonpartisan organization that promotes the public interest in strengthening the financial system. ‘If there is a run on money market funds as there was last time, it is literally a matter of hours before the banking system of the U.S. shuts down — even the payment system. All the banks will start to fail.’

Following one of the worst economic events in the history of the country, ‘Too many banks continue to fund their businesses with short-term funding that must be rolled over on a daily or weekly basis,’ says Kelleher.”

***

Read full Bankrate article here

 
In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today