http://www.reuters.com/article/2014/07/23/us-sec-moneyfunds-idUSKBN0FS08E20140723

SEC adopts long-awaited reforms for money market funds

(Reuters) - U.S. securities regulators adopted rules on Wednesday to curb the risk of investor runs on institutional money market funds, mainly by requiring their value to float instead of maintaining a value of $1 per share.


can someone please explain this in layman's terms?  if i understand it correctly, the $1 dollar basis in a mm can now change?!?

I am interested in this thread also. Can someone elaborate please.

Also interested for the kids accounts.

I don't fully understand what the big difference is but one thing I can say for certain is that this only affects "Institutional Investor Funds".
That means if you are using a Money Market Fund at your bank (retail) chances are this has no effect on you.
This only affects Money Market Funds sold at brokerage houses, such as Vanguard, Fidelity, etc.

Some more that I know, but I don't know all of the why's:
*Money Market Funds have historically targeted a fund share cost of $1.  So if you had $400 in the account, you owned 400 shares.  Why the fund price is so relevant I'm not sure, but that's what this is all about.  The Institutional Money Market Funds are now being told to allow that $1/ share to float, just like any other share in any other Mutual Fund.  By definition there shouldn't be much float day to day in these funds, they are invested in CDs, Commercial Paper and other relatively stable assets.
*Some Money Market Funds are FDIC insured, some are not.  The some of the ones that are will be at banks/ credit unions, but not all of them.  Ones at brokerage houses will not be FDIC insured.

Thanks for the info. I just checked w/ my CU, they are FDIC insured.

why the hell does a college organization get to dictate economic policy?

college sports has gotten WAY too big if you ask   me.

That was good for a laugh