Money funds remain vulnerable to redemption, Fed says

06/12/2012 | Reuters

Staff members at the Federal Reserve said in a blog post that the threat of heavy redemption during tumultuous times continues to plague U.S. money market mutual funds. Investors are concerned that the eurozone debt crisis will spark another global meltdown. Regulators have implemented tougher rules to ensure money market mutual funds do not break the buck, as the Reserve Primary Fund did in 2008, but weakness remains, according to the blog.

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