The SEC Money Market Reform is an example of how good intentions can lead to potentially disastrous results. It all began with the financial crisis of 2008. The Reserve Primary Fund, a large fund manager in New York, was forced to reduce its net asset value (NAV) of money market funds due to failed short-term loans by Lehman Brothers. This caused a panic among institutional investors followed by mass withdrawal of funds. Within 24 hours, Reserve Primary Fund lost two-thirds of its total assets, prompting it to close its doors for good immediately. In 2014, six years after the financial crisis, the SEC came up with a noble idea: implement…