FW: "Money fund rescue smacks banks"
"Money fund rescue smacks banks" writes the latest Financial Week, a weekly publication from Crain Communications. It says, "Already, Bank of New York Mellon, Legg Mason and Northern Trust have reported that their efforts to firm up money-market funds and cash strategies this year will weigh on their Q3 earnings." The piece adds, "According to an estimate by money-market research firm Crane Data, 21 financial institutions have pumped more than $5 billion in capital into their money-market funds during the last 13 months -- the most since 40 money-market funds were bailed out almost 15 years ago." Finally, FW says, "Five companies that have propped up their funds in the past few weeks -- Evergreen Investments, RiverSource Investments, Columbia Management, Russell Investments and Dreyfus -- each acknowledged that they had money-market funds holding Lehman debt after the company filed for bankruptcy. Combined, the five firms had at least $1.5 billion in Lehman exposure among them, according to company filings. Not all of the companies disclosed how much they would infuse into their funds to compensate for the Lehman debt, but Mr. Crane estimates the figure at a combined $1 billion."
