​ A History of Liquidity Incidents Impacting Money Market Mutual Funds. With recent hysteria and misinformation surrounding commercial paper and money funds, we wanted to review the historical record of minor problems involving these conservative investments. No individual investor has ever lost money in a money fund, and there has only been one case of an institutional fund "​breaking-​the-​buck", or dropping below $​1.​00. Here is a synopsis of prior money fund bailouts: 2001 California Energy Crisis - PG&​E defaults, about 10 funds buy out CP from funds (​PG&​E pays all principal and interest); 1998 General American Life - Funding agreements seized in bankruptcy, several funds impacted (​investors paid in full); 1997 Mercury Finance - Strong Money funds bailed out over defaulted CP; 1994 Derivatives Bailouts, Orange County Bankruptcy - 20+ funds bailed out of troubled securities, since banned from money funds; 1994 Community Bankers US Govt Money Mkt Fund - first and only money fund to "break-​the-​buck", $​100 million fund liquidated at $​0.​96 per dollar.

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