In place of depositories, not, MMMFs had no financial support, no deposit insurance policies, and-about technically-no access to the financial institution regarding last option

Toward newer months, the brand new role of your FHLBs is much more cutting-edge and requires a conclusion out of a couple big regulatory shifts: the brand new SEC's reform of money markets common fund (MMMFs), therefore the introduction of the fresh new exchangeability standards to have banking institutions.

Keep in mind one following the Lehman's incapacity within the inside the 2008, dealers started initially to flee away from MMMFs. To prevent the latest work at, the fresh new U.S. Treasury secured all of the $step 3.8 trillion from inside the a good MMMF debts. Once we talked about before (pick right here), MMMFs functioned similar to banks engaged in this new conversion of liquidity, borrowing and you may (to some degree) maturity.