"Money Funds Seen as 'Endangered Species'" writes Financial Planning. The article says, "[W]hile the industry certainly has reason to celebrate all that cash piling up, some mutual fund leaders warn that hoarding cash in ultra-safe investments creates its own set of risks. Others note that regulators are bound to change money funds' mandate, and that due to zero yields, many money fund companies are absorbing administration fees to prop up NAVs." It quotes ICI Chairman John Murphy, "Some institutional money market funds are very big, and there's a tremendous amount of risk in those large, institutional money market funds. The money fund represents an unconditional put at a dollar. When you've got large investors in there, that's a risky situation."
