The Big Money Market Fund Freeze

By: Matthew Arndt, CFA, CPA, CFP | January 28, 2010 | Investor Information, The Regulators

All those invested in Money Market Funds beware. In a nearly unanimous vote the SEC has made it legal for Money Market Funds to have the ability to suspend redemptions if they see fit. So as it stands if there were another financial meltdown, money market investors would NOT be able to withdraw their money if the Money Market Fund decides to exercise this right. Isn’t a Money Market Fund deposit suppose to be highly liquid investment comparable to a cash deposit? Wouldn’t this sort of rule impose significant hardship on investors who rely on their ability to redeem shares at a moment’s notice? Who in the hell are these guys at the SEC working to protect? Guys like Madoff? This is truly a head-scratcher!

Watch Dog Publisher

Use our National Registry to find pre-screened, five star rated planners and advisors who provide financial advice and services in your community. Free Public Service.

Search Function

Search by Key Word, Category or Author Name

Performance Calculator

Not sure if your investment returns are competitive? Click here for a free comparison to Watchdog benchmarks.

Discussion Topics

Twitter Updates

RT @SaraLasham: Financial Advice - A Financial Planner's Letter to Her College-Bound Son http://bit.ly/agK2py Great message to young adults 3 hours ago

@investwatchdog Thanks for the RT! 2010/09/01

@moneyhighway RE: Moneyless man: Well, cudos to Mark for doing this. I'm too much of a wimp to go without the creature comforts... 2010/09/01

@VAERDI Seriously! I guess I'm old fashioned in the sense that if they have to disclose major violence in the trailer, I'm not interested! 2010/09/01

Other Notable Blog Sites

Blogroll
Regulatory Links

Popular Searches

Investor Watch Dog is a weblog designed to inform investors about hidden risks when they invest assets based on the recommendations of financial planners, financial advisors, money managers, insurance agents, and investment sales representatives. Some of Wall Street's biggest investment risks result from Ponzi Schemes, investment bubbles, conflicts of interest, bad advice in bear markets, lobbyist activities that promote industry interests, bad investment products, and anti-investor business practices. While some of these risks are worthy of front page headlines, millions of investors assets are much more frequently exposed to less newsworthy but exponentially more harmful investment scams, financial fraud, illegal investment products, bad financial advice, bad investment recommendations, misrepresentation, omission, abuse of trust, deceptive sales practices, and breach of fiduciary duties. The role of Investor Watch Dog is to shine a spotlight on legal and illegal business practices that undermine the financial interests of investors, retirees, business owners, professionals, executives, and other types of consumers who rely on Wall Street and its financial professionals for the advice and services they need to achieve their financial goals.