You remember September 2008 vividly. Lehman Brothers collapses. The Reserve Primary Fund finds itself holding the bag on a lot of Lehman assets, which plunge suddenly in value. The nation’s oldest money fund “breaks the buck,’’ telling investors it can’t pay out $1 for each share they hold for which they had been promised would always be worth $1.

There’s a run on money funds. SEC chairman Mary L. Schapiro later puts the run at $300 billion and, after the first set of reforms, says the federal government can never again step in guarantee assets held in the funds.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.