From the HUFF POST:
When Lehman Brothers collapsed in 2008 and shattered the belief that U.S. money market funds would never “break the buck,” Washington rushed to limit the damage.
But as Europe’s debt crisis threatens to put the U.S. financial system under strain again, U.S. policymakers are worried they cannot turn to those same, impromptu tools to shore up the $2.6 trillion money markets industry.
“We’ve done a lot to prepare the banking sector,” Jeffrey Lacker, president of the Richmond Federal Reserve Bank, said on Wednesday. “I’m less confident about the money market funds and their ability to weather major problems at European institutions.”
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