2007

Sentinel Management Group closes a commodity cash fund, mistakenly identified in the media as a money market fund.

Investors added $157 billion in new cash to money market funds, the second largest inflow since 1984.

 2008

A Securities and Exchange Commission sweep of money market funds for structured investment vehicle holdings is reported.

Credit rating agencies start to downgrade bond insurers.

Reports surface of failed auctions for auction-rate securities (ARS).

Executive Committee of ICI Board of Governors establishes a task force of senior industry executives to monitor the credit crisis impact on money market funds.

Investors added $159 billion in new cash to money market funds, the largest inflow since 1984.

More than 80 percent of ARS auctions fail; major banks declare the market frozen.

Federal Reserve makes $200 billion available to banks through a newly created securities lending facility.

The Bear Stearns Company is sold to JPMorgan Chase with $29 billion in federal assistance.

Securities and Exchange Commission and Department of the Treasury grant relief on liquidity-protected preferred shares to refinance closed-end funds’ auction-market preferred shares.

Fannie Mae and Freddie Mac shares fall sharply on estimates of large capital needs.

Financial institutions begin entering into agreements to buy back ARS.

Fannie Mae and Freddie Mac placed in federal conservatorship.

Lehman Brothers Holdings Inc. declares bankruptcy.

Bank of America agrees to acquire Merrill Lynch for $50 billion.

Reserve Primary Fund fails to maintain $1.00 NAV, becoming the second money market fund in 25 years to “break a dollar.”

Federal Reserve announces loan of $85 billion to AIG; government takes 80 percent equity stake in company.

Institutional money market fund assets shrank by $119 billion, to $2.16 trillion, in the week ending September 17, according to ICI data.

Putnam announces closure and orderly liquidation of its $12.3 billion Prime Money Market Fund, which serves only institutional investors.

Treasury announces Temporary Guarantee Program for Money Market Funds.

Federal Reserve announces liquidity facility to finance purchases of asset-backed commercial paper from money market funds.

Treasury unveils proposal for a $700 billion Troubled Asset Recovery Program (TARP).

Federal Deposit Insurance Corporation seizes Washington Mutual, sells assets to JPMorgan Chase.

Congress passes and President Bush signs the Emergency Economic Stabilization Act of 2008, which includes TARP.

Investors added $149 billion in new cash to money market funds, the third largest inflow since 1984.

Investors withdrew $128 billion, on net, from stock, bond, and hybrid funds, the largest outflow as a percentage of assets since October 1987.

 2009

Money market fund assets hit $3.92 trillion, their highest level to date.

President Obama signs the Economic Stimulus Act.

The Money Market Working Group, a task force of senior industry executives, submits its report to the ICI Board. The Board endorses the Working Group’s call for immediate implementation of most of the recommendations on new regulatory and oversight standards for money market funds.