After an unbelievably unstable 6 months given that Lehman Brothers proclaimed bankruptcy, Finbar McCall pondered his alternatives. As the financial investment supervisor of RPG Prime Reserve Fund, Inc. (RPGXX), McCall had actually simply heard the news that the United States Treasury was extending the accessibility of insurance coverage for qualified cash market funds. When the insurance coverage was very first provided in September of 2008, RPGXX right away made an application for protection.
McCall's problem in February of 2009, when an extension of the Treasury insurance coverage was provided, included weighing the expense of the insurance coverage versus the convenience it may offer to skittish RPGXX investors and the enhanced versatility it would allow investing RPGXX's possessions. This case offers a quick history and description of cash market funds, the phenomenon referred to as "breaking the buck," and how the federal government's support altered the landscape of cash market funds in the last months of 2008 and into 2009.
PUBLICATION DATE: June 29, 2010 PRODUCT #: 810704-VID-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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