University of Pennsylvania Carey Law School Penn Law: Legal Scholarship Repository Faculty Scholarship at Penn Law 2015 The Broken Buck Stops Here: Embracing Sponsor Support in Money Market Fund Reform Jill E. Fisch University of Pennsylvania Carey Law School Follow this and additional works at: https://scholarship.law.upenn.edu/faculty_scholarship Part of the Banking and Finance Law Commons, Corporate Finance Commons, Finance Commons, Portfolio and Security Analysis Commons, and the Securities Law Commons Repository Citation Fisch, Jill E., "The Broken Buck Stops Here: Embracing Sponsor Support in Money Market Fund Reform" (2015). Faculty Scholarship at Penn Law. 1324. https://scholarship.law.upenn.edu/faculty_scholarship/1324 This Article is brought to you for free and open access by Penn Law: Legal Scholarship Repository. It has been accepted for inclusion in Faculty Scholarship at Penn Law by an authorized administrator of Penn Law: Legal Scholarship Repository. For more information, please contact
[email protected]. CITE AS 93 N.C. L. REV. 935 (2015) THE BROKEN BUCK STOPS HERE: EMBRACING SPONSOR SUPPORT IN MONEY MARKET FUND REFORM* JILL E. FISCH** Since the 2008 financial crisis, in which the Reserve Primary Fund (“Reserve Fund”) “broke the buck,” money market funds (“MMFs”) have been the subject of ongoing policy debate. Many commentators view MMFs as a key contributor to the crisis because widespread redemption demands during the days following the Lehman bankruptcy contributed to a freeze in the credit markets. In response, MMFs were deemed a component of the nefarious shadow banking industry and targeted for regulatory reform. The Securities and Exchange Commission’s (“SEC”) misguided 2014 reforms responded by potentially exacerbating MMF fragility while potentially crippling large segments of the MMF industry.