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"In our view, customers may withdraw assets first, and ask questions later," he wrote.
As Lehman's troubles grew this year, many funds began to withdraw assets, switching to larger banks like Credit Suisse.
A number of fund firms have warned of tougher conditions as investors become more cautious and withdraw assets.
As Lehman's troubles grew last year, many funds began to withdraw assets, switching to larger, more stable banks.
Ms. Schapiro also addressed efforts to change the rules governing money market funds, which she said were still vulnerable to runs by investors seeking to withdraw assets.
Doing so would make them and the financial system as a whole far more vulnerable in a moment of panic, when everybody wants to withdraw assets in a hurry.
Similar(52)
Libya also cut off all oil supplies to Switzerland and withdrew assets from Swiss banks.
Bear Stearns fell amid a run on the bank, as customers withdrew assets and trading partners refused to do business with the firm amid fears about its available cash.
The institute's figures show that fund investors behaved just as they have over the last couple of months — withdrawing assets, on balance, from stock mutual funds.
For the Duke contest, the students were asked to design a portfolio for an investor who was expecting to retire or begin withdrawing assets around 2020, just seven years away.
In New York, the stock market is down, investors are withdrawing assets from his fund, and he has borrowed four hundred million dollars, from a financial-world friend, to cover the hole in his balance sheet.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com