Fox Business writes "Congress Likely to Probe Money Market Funds Over Greek Exposure". The article says, "A Congressional hearing on the mutual fund industry this week will likely put money market funds under scrutiny for any holdings of Greek debt and other euro zone investments. The House Financial Services Committee announced June 3 that its capital markets subcommittee would conduct a standard oversight hearing of the industry this Friday. But the faltering $160 billion Greek financial bailout, launched last year by the European Union and the International Monetary Fund, now threatens to put the industry on the defensive at the hearing -- especially its $2.7 trillion in money market funds, which are supposed to invest mainly in the safest short-term debt securities to protect customers' cash." The piece adds, "But two weeks ago, a top Federal Reserve official warned that U.S. money funds might be vulnerable to 'unexpected international financial problems' emanating from Europe.... The mutual fund industry and fund analysts have pushed back on arguments that money market investors are at greater risk with the unfolding events in Greece and EU countries." Also, see the Reuters blog "Is it time to clamp down on money funds?".
