9/23/2023 0 Comments Keygen ipos 4.0.4.6To protect themselves, many investors abruptly withdrew their money. Within days, Reserve Primary lost some $60 billion of its $62 billion in funds, and it was closed shortly afterward.9Īt the time, investors in other money market funds, even those not directly affected by the Lehman bankruptcy, treated the fates of Lehman Brothers and Reserve Primary as a signal that other investment banks and money market funds might also be at risk. This forced the money market funds to withdraw their funding from banks. Money market fund investors suddenly wanted to move their money into safer assets, such as government bonds or even just cash. Therefore, runs can occur in two ways-the money market funds can run to withdraw their funds from the banks, and the money market funds’ investors can run to withdraw their money from the funds.Ī double run of this sort actually happened in the fall of 2008. At the same time, the money market funds’ own investors may become concerned about the money market funds themselves and rush to take their money out. They can do this by not renewing the short-term loans they gave to the bank. The Bankers' New Clothes: What's Wrong With Banking and What to Do About Itīig bang: deregulation of the City of London,Ĭredit default swaps / collateralized debt obligations,
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