Banks: Show Investors the Money (Funds)
BY MARTIN GONZALEZ AND DAVID REILLY
In a postcrisis world, big banks shouldn’t be allowed to ignore uncomfortable realities. Yet when it comes to money-market funds, J.P. Morgan Chase, Wells Fargo, Bank of America and Citigroup have asked for special treatment allowing them to do just that.
Money-market funds aren’t explicitly guaranteed by their sponsors. And yet in recent years, they have received considerable support from them and, in the wake of Lehman Brothers’s collapse, the federal government. Such implicit support, many banks and fund managers acknowledge, means looming accounting-rule changes could potentially require them to show money-fund assets on their books.
Banks and asset managers …