Editorial Board
Money-Market Funds Should Tell the Truth
They should all drop the fiction that they can maintain a price of $1 a share.
This has happened to money-market funds, too.
New rules aimed at strengthening one of America’s most popular savings products -- the money-market mutual fund -- are causing a minor tempest in financial markets, drawing complaints about unintended consequences.
Actually, where they’ve been applied, the rules are working as they should. To avoid the unintended consequences, they need to be applied more comprehensively.