Reuters writes "Investors pull out of money market funds as guarantee ends". It says, "Investors stepped up their withdrawals from money market funds this week days before a federal guarantee to safeguard their assets expires on Friday, industry data show. The outflows could sharpen scrutiny of how to regulate the funds, which now hold $3.5 trillion despite paying almost no interest of late. Investors took out a total of $55 billion from money market funds on Tuesday and Wednesday, far more than usual, Peter Crane, president of fund-watcher Crane Data LLC, said in an interview." Crane told Reuters, "There's a glimmer of evidence that there is money leaving because of the end of the guarantee." The article added, "Still, Crane and other industry analysts said they do not expect panicked withdrawals since investors have had months to prepare for the end of the insurance program." See also, Reuters' "U.S. Treasury to keep $1.2 billion money fund premiums", which says, "The U.S. federal government will keep about $1.2 billion in payments collected to backstop money market funds even after its insurance program ends on Friday, a U.S. Treasury official said." See too, ICI's weekly "Money Market Mutual Fund Assets", which says, "Total money market mutual fund assets decreased by $62.60 billion to $3.482 trillion for the week ended Wednesday, September 16." Finally, see LA Times' "U.S. money market fund guarantee, R.I.P.", which quotes, "Pete Crane, editor of the Money Fund Intelligence newsletter, notes that even though the guarantee program is disappearing many of the debt securities that money funds own retain some kind of government or Federal Reserve backstop, thanks to the alphabet soup of lending programs put in place amid the credit crisis last fall."
