Fortune posts "Risky money market fund bets may be illegal"

Oct 27 07

Yesterday, CNNMoney.com's Fortune posted the ridiculous speculation that "Risky money market fund bets may be illegal". The article offers absolutely no support that recent SIV purchases might have been in violation of money fund quality, diversity, and maturity regulations, a.k.a. Rule 2a-7 of the Investment Company Act of 1940. Money funds must hold securities with "minimal credit risks", but writer Peter Eavis doesnt' realize that the rules apply only when a fund purchases a security.

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