$900 Billion in Capital Is About to Move

Six years after the financial crisis, the SEC finally concluded a four-year battle with financial industry lobbyists to toughen regulations governing money market funds.

Readers may remember that a run at the $62.5 billion Reserve Primary Fund during the 2008 financial crisis brought the multi-trillion money market industry to a standstill.

And it required federal intervention to prevent a market collapse…

The reason: the Reserve Primary Fund was forced to “break the buck” (that is, lower its price to below the $1.00-per-share industry standard for its type of money market funds) due to heavy exposure to plummeting Lehman Brothers debt securities.

Here’s why the new regulations are about to cause a colossal market cash shift… Full Story