The Dodd-Frank Deposit Insurance Provision, which insures accounts over $250,000 is set to expire by the end of the year. When the program (often referred to as its first incarnation, the Transaction Account Guarantee) ends, funds over the limit will be moving to money-market funds, analysts predict according to the Wall Street Journal.
"Money-market funds will be the first stop for this corporate and institutional money," said Tom Nelson of Reich & Tang,
Another WSJ piece on money-market funds delves into the question of fund regulation, namely: will the Financial Stability Oversight Council do what the SEC won’t?
The FSOC, "due to an impasse at the Securities and Exchange Commission over a plan to impose stricter rules on money funds,…is faced with exercising for the first time its powers to encroach on an independent regulator's turf," writes the WSJ.
Treasury Secretary Timothy Geithner, who heads the council, has taken the first steps in this direction.