Since the Reserve Prime money market fund was unable to keep its price at $1 a share in 2008 because it had invested too much in Lehman Brothers commercial paper, regulators have been on the lookout for similar occurrences.
Now, with a year’s worth of added, stifling regulation, in the form of the Dodd-Frank Act, there are added reports that the Greek financial fiasco may have impaired certain European banks, especially French commercial paper, in which some, not all, money market funds invest.
As is the case with all these inept regulations, they stifle business activity more than they minimize risk.
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