USA Today's "Fundline: What was the worst fund news to hit in 2008?" asks, "Who was 'swimming naked' last year?" It answers, "The Reserve fund. The nation's oldest money market mutual fund collapsed Sept. 16, allowing its share price to fall below $1 -- 'breaking a buck,' as it's known in the industry. It was a staggering blow to the money market industry, which has long held itself out as a bastion of safety. Bruce Bent ... was an outspoken critic of other money funds, often arguing that they took too much risk." "A lot of money funds lost their way," he told the paper. "Just follow the rules. Don't get clever." The article also discusses problems in "Ultrashort income funds." In other news, see FT Alphaville's "Slow road to recovery", which includes a Crane Data table showing the recovery in Prime money fund assets.

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