Prime money markets funds are in trouble
FT News Briefing
Forhecz Topher
4.4 • 1.3K Ratings
🗓️ 12 April 2024
⏱️ 14 minutes
🧾️ Download transcript
Summary
Three more US regulators have opened probes into Morgan Stanley, managers are planning to shut or convert US prime money market funds ahead of new regulations, and the European Central Bank held interest rates steady. Plus, sanctioned Russian oligarchs got a big win in a top EU court.
Mentioned in this podcast:
EU’s sanctions regime in turmoil after oligarchs win legal battle
Managers to shut or convert $220bn of US money market funds before rule change
US allies urge Iran not to retaliate against Israel
European Central Bank holds interest rates at 4% in contested decision
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The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Ethan Plotkin, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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Transcript
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| 0:00.0 | The UK's energy partner. |
| 0:06.0 | Learn more at equinore. |
| 0:10.0 | At Aquinore. UK. Good morning from the Financial Times. Today is Friday, April 12th, and this is your |
| 0:18.4 | F.T. News briefing. A federal investigation into Morgan Stanley just got a lot bigger and new regulations |
| 0:27.4 | could force billions of dollars out of prime money market funds. |
| 0:32.4 | Plus Russian oligarchs have found a way to challenge |
| 0:35.2 | EU sanctions. I'm Sonia Hudson and here's the news you need to start your day. Three more U.S. regulators are investigating Morgan Stanley's wealth management division. |
| 1:01.0 | They're looking into how the company vets potentially risky clients. |
| 1:06.3 | The Federal Reserve already had the business in its sites over money laundering controls, and now the Securities and Exchange Commission, the Office of |
| 1:14.6 | the Comptroller of the Currency and the Treasury are also involved. |
| 1:18.9 | Morgan Stanley has grown its wealth management division considerably over the past several years, |
| 1:25.7 | but it's been lagging during this period of high interest rates. |
| 1:30.0 | News that this federal investigation has widened in scope isn't helping. |
| 1:34.5 | Morgan Stanley's share price fell more than $200 billion worth of U worth of US money market funds. |
| 1:56.2 | It's in response to a new rule from the Securities and Exchange Commission that goes into |
| 2:01.1 | effect later this year. |
| 2:03.0 | This is potentially bad news for both investors |
| 2:07.0 | and the banks and companies that issue short-term commercial debt. |
| 2:11.0 | I'm joined now by the F.T.'s Harriet |
| 2:13.5 | Clarfeelt to discuss. Hi Harriet. |
| 2:15.8 | Hi, Harriet, before we get into the implications of this new SEC rule, Can you first explain to me the type of money |
| 2:25.8 | market fund that is going to be impacted by it and just how important that is? |
... |
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