Crane Data Subscribers
FT.com Erroneously Claims Money Funds Halt Redemptions, Break Buck. Since the credit crisis began in August, we've repeatedly seen incorrect reporting on money market mutual funds. But a new FT.com article takes the misinformation to a new level. In "Ailing fund bail-outs hit $3 billion," reporter Deborah Brewster claims, "Two other fund managers have suspended redemptions at money market funds." Speaking on "breaking the buck", she says "[M]any money funds have done so recently". These statements are both false. Like CNBC and WSJ, FT confuses enhanced cash vehicles with money funds. The article also mistakes total amounts purchased from funds with actual losses or "bail-outs", which are a mere fraction of the total securities purchased. We encourage readers to remain vigilant against such inaccuracies, and to complain about incorrect reporting. See ICI's "Media Advisory: Reporting on Money Market Mutual Funds" which urges reporters to be clear on what is, and what isn't, a "money market" or a "cash" fund. Again, for the record, no money market, or "cash" funds, have halted redemptions or broken the $1.00 NAV during the current crisis, contrary to some reports!
