The Fed said in a report that at least 21 mutual funds could have "broken the buck" during the financial crisis if no additional cash support from firms that run them had been provided.
The Boston Globe reports
that a total of $4.4 billion in support was received by 78 money market funds, according to Fed data. In many of the funds, support from mother firms was to ensure the funds' safety. But in 21 companies, if the additional support had not come through, the funds would have fallen below the stable $1-per-share value.
Fed data, which was gathered by examining 341 prime mutual funds' public records, shows Columbia Funds
] (which was then part of Bank of America), Dreyfus
] (which is now a part of BNY Mellon), Charles Schwab
] and T.Rowe Price
] all provided cash support to their funds.
This report comes during the heated debate on whether stricter rules are needed for money market funds.
, Boston Fed president, supports SEC
chairman Mary Schapiro
in her proposals to change money market fund regulations.
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