Fidelity Move Creates $100 Billion Gap for Banks

Fidelity Investments said last week that its Fidelity Cash Reserves Fund, the largest of its kind in the world, will stop buying short-term debt issued by companies in response to a regulation restricting it to U.S. government securities. The move will leave a $100 billion funding hole for lenders, such as JPMorgan Chase & Co. and Wells Fargo & Co. who rely on the fund to buy their commercial paper and is "the opening shot" for others to follow, according to Joseph Abate, a strategist at Barclays Plc.