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Money Market Mutual Funds Arbitration

Bank and mutual fund customers have parked nearly $3 trillion into money market mutual funds and most mistakenly believe the investments are entirely risk-free despite not being insured by the FDIC. But in fact, some money market funds in recent years quietly began investing in Fannie Mae and Freddie Mac, mortgage-backed securities, and even harder to value assets such as timber and highways.  According to the Los Angeles Times, many banks mistakenly believed that if money market funds contained a diversified portfolio of high risk items, the overall portfolio would remain secure.

Signs of trouble are now looming. Legg Mason Inc., Sun Trust and Bank of America have all announced they are injecting huge swaths of emergency capital into their swooning money market funds.   Experts are saying that because Wall Street pumped out so many kinds of new customized instruments, they no longer know the value of what’s tied to money market funds.

It’s been said that no bank would ever let their money market funds break the buck, but this market has taught us that savvy investors must expect the unexpected.  Investors in auction rate securities also thought they were investing in risk free cash equivalents.

It’s not hard to predict that investors may claim they were defrauded by investing in money market mutual funds without having any disclosure about such funds holding toxic mortgage backed securities and other speculative asset backed securities.  Banks and brokers who did not disclose such risks should expect to hear from investors through securities arbitration claims.

Zamansky LLC offers free consultations for investors to help them determine their next course of action.  We are investigating high profile money market funds including the Charles Schwab Advisor Cash Reserves and similar funds from Morgan Stanley, Barclays, UBS, Duetsche Bank among others.

Articles and blogs about money market mutual funds.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

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