Money Market Funds Just Got Safer … Or Did They?

After years of debate, the Securities and Exchange Commission this week finally adopted new rules designed to shore up the stability of the $2.6 trillion money market  industry. The question now is, will it help? While the changes largely affect institutional investors, one provision also applies to small investors by temporarily restricting their access to their money if a fund has liquidity problems. For decades money market funds were seen as reliably boring, investing in government securities or high-grade corporate debt. Though the funds’ …

Ponzi Victims Can Sue, Supreme Court Says

In 2012, Robert Allen Stanford was convicted of running a Ponzi scheme that bilked investors to the tune of $7 billion. While that might be only a fraction of the $65 billion that Bernard Madoff got away with, it’s still about 10 percent of New York City’s budget for 2013. Stanford was sentenced to 110 years in prison, but his victims demanded more than just jail time. While they couldn’t sue Stanford directly, they could, they argued, sue the firms …