The risk from securities issued by European banks has been "mischaracterized," said Mercer Bullard, founder of Fund Democracy, a consumer group that advocates on behalf of U.S. mutual-fund investors.
"There is no empirical basis for the assertion that these holdings pose a threat to money-market mutual funds' net asset values," Bullard, a law professor at the University of Mississippi, said in testimony June 24 before a subcommittee of the House Financial Services Committee in Washington.