On July 19, the NY Fed issued a staff report on money market fund reform to address the equitable distribution of withdrawals out of a distressed fund. Currently, fundholders who redeem early receive the full amount of their investments, leaving later redeemers to bear any losses. The report contains several proposals that would disincentivize runs on distressed funds. NY Fed Release. NY Fed Paper.
NY Fed
NY Fed Paper on Legal Issues in the Secondary Mortgage Market
On May 12, the NY Fed released a paper entitled “A Foreclosure Crisis” on legal issues in the secondary mortgage market. NY Fed Paper. NY Fed Release.