NY Fed

NY Fed Releases Money Market Fund Reform Staff Report

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.