In the next few weeks, investors withdrew almost $ billion from prime money market funds. The funds, concerned about their ability to meet further redemptions, began to reduce their purchases of commercial paper and limit the maturity of such paper to only overnight or other very short maturities.
On October 2, 2005, shortly after I took up office as Governor, the government resolved to adopt the principles of the new Bank of Israel Law in the spirit of the Levin Committee’s recommendations and developments in this field abroad.