Barrage of Money Market Funds Buying Out or Shielding SIV Stories. Numerous stories on money market funds taking action to protect or remove their troubled SIV holdings hit today, including a front page one in USA Today, "Money market funds at risk?". The article says Bank of America "set aside $600 million to cover potential losses in its [Columbia] money market funds [$300 million] and an institutional cash fund [$300 million]," which is "not technically a money fund". (We assume the latter is the mammoth $40 billion plus Columbia Strategic Cash, or 'StratCash', an "enhanced cash," "3c-7" private placement fund.) The article also clarifies that Legg Mason "set up a $238 million line of credit for two money funds" and "invested $100 million to buoy an offshore money fund." The New York Times, on page 1 of the Business section, writes "Investor Safe Haven Becomes a Concern. It reveals that Wachovia may end up suffering as little as $5 million damage on its bailout, and "perhaps nothing". (The Times' chart incorrectly labels a surge in money assets as retail, but this should be institutional.) Associated Press writes, "Money funds set aside cash for trouble but it's unlikely a fund will fail, observers say". AP's article says, "Peter Crane, president of Crane Data LLC, which tracks money market mutual funds, says he doesn't believe this will wind up hurting the average money market client." Finally, The Washington Times writes "Firms prop up money-market funds".

Email This Article




Use a comma or a semicolon to separate

captcha image