Note: This revised article corrects a previous report that Lehman had disclosed support for its money market funds. This is not the case, says the company.

Today's Wall Street Journal, in an article entitled "Lehman Liquidates 3 Struggling Funds", says Lehman Brothers Holdings had "purchased $800 million of assets," and quotes a "Lehman executive [who] said the assets were from two money-market funds and one enhanced-cash fund, a type of vehicle designed to give investors more yield than simple money market funds". Lehman's filing (search for "liquidate") also said three funds were liquidated and assets were moved onto the bank's balance sheet. However, sources at Lehman tell Crane Data that these disclosures are not related to money market mutual funds or enhanced cash funds. (Bloomberg's "Lehman Says It Bailed Out Money Market, Cash Funds" is sticking with the story that money funds were involved.)

Crane Data shows no liquidations occurring in any Lehman or Neuberger & Berman money market mutual funds, contrary to published reports. Again, the company says that these actions related to small short-duration fixed income funds, and that neither the purchases nor liquidations involve money market funds. The disclosures involve events that occurred many months ago and are not related to any potential recent support actions involving money funds (which would not have to be disclosed for months).

Lehman's filing says, "Due to market disruptions that occurred in the second half of the 2007 fiscal year and further deterioration in the 2008 quarter, certain investments held by the funds were either downgraded by rating agencies and/or experienced a decline in fair value. Accordingly, and as a result of these events: * Three funds were liquidated. The assets of those funds were purchased by the Company.... The fair value of these assets at February 29, 2008 was approximately $1.0 billion. * The Company purchased certain deteriorated assets from certain funds. The funds used the cash received from the Company to either redeem investors in the funds or make alternative asset investments. The acquired assets of those funds were then included in the Company's consolidated statement of financial condition at February 29, 2008 at an approximate fair value of $0.8 billion. * The Company agreed to waive or otherwise limit its investment management, advisory or other administrative fees charged to certain funds; however, the Company has the ability to recoup those fees from the fund at a later point in time.

Lehman Brothers is the 22nd largest manager of money market mutual funds with over $30 billion in assets. Its fund lineup appears intact, with the largest fund offerings including: Lehman Brothers Cash Mg Prm, Lehman Brothers ILF MMP Inst, Lehman Brothers ILF Prime Inst, and Lehman Brothers Prime Reserv.

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