From a reader

One point on your post on U.S. money market funds’ ownership of European bank paper: much of what the U.S. money
market funds own is paper issued by the U.S. domiciled subsidiaries of those banks (a partiallist of DB’s: http://annualreport.deutsche-bank.com/2010/ar/notes/additionalnotes/38subsidiaries.html). This is according to the CEO of Federated Investments (one of the largest operators of MM funds), speaking at the KBW investment conference last week. Obviously, the turmoil in Europe isn’t helpful to these subs, but, as they have their own U.S.-domiciled assets backing them, they carry considerably less risk than parents do.

The initial post was here.