Money market fund redemptions taper off

Redemptions from U.S. money market mutual funds declined on Friday, with investors pulling out $5.2 billion compared to $47.7 billion the day before, according to the Westborough, Mass.-based research firm iMoneyNet.
SEP 22, 2008
By  Bloomberg
Redemptions from U.S. money market mutual funds declined on Friday, with investors pulling out $5.2 billion compared to $47.7 billion the day before, according to the Westborough, Mass.-based research firm iMoneyNet. Last week, investors pulled out a record amount of cash out of money market funds following the crisis sparked by when the net asset value of New York-based Reserve Management Co. Inc.’s Primary Fund dropped to 97 cents. On Friday, the U.S. Treasury announced a program to guarantee money market funds. Details are just beginning to emerge, but researchers hope the move will begin to restore investor confidence in the industry.

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