WSJ Says First American Funds Bailed Out, Backing Cheyne SIV Holdings. Today's Wall Street Journal features a story entitled, "More Money-Market Funds Hit Trouble", which says that U.S. Bancorp subsidiary First American Advisors' previously had "purchased all Ottimo Funding Trust secured liquidity notes held" by the First American Prime Obligations Fund. The company also entered into a credit agreement to protect its holdings in SIV Cheyne Finance LLC. CEO Richard Davis was quoted saying, "U.S. Bancorp would support all affected funds." An update on First American Prime Obligations holdings may be seen here; their August statement is here. The Journal also noted that RiverSource Cash Management "has a tiny percentage in the security." The piece adds, "[O]ther funds also were holding Cheyne-related holdings, although in small quantities.... Valic II Company fund, offered by a unit of American International Group Inc., held less than 1% of its $337 million in assets in one Cheyne security as of early September." The article emphasizes, "No money market fund has broken the buck in the recent turmoil."

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