could be a number of reasons behind this. During the height of the fear during Bear Stearns, Lehman a number of people tried to pull their money out of money market funds which caused the funds to attempt to come up with the cash needed for redemptions in a difficult market. There were a number of investors who were sure the whole system would collapse. Several funds broke or came close to breaking the buck due to shareholder redemptions and the difficult environment that resulted due to the collapsing liquidity.
The SEC today voted barely to allow money market accounts to regulate withdrawals and make it easier on funds to regulate and maintain liquidity levels. On the surface, this appears to be a good idea, due to the very real fear that resulted with the financial crisis. However, there is also the possibility that, they are attempting to push investors out of the money market funds and into other highly liquid investments to spur economic growth.
What are some thoughts?
http://online.wsj.com/articles/sec-to-vote-on-final-money-market-mutual-fund-rules-1406124323
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542347679#.U9CHrNq9KSM