As of Sept. 18 money market funds are no longer govt-secured

Posted on September 21, 2009 by Les Jones

Reuters – Money fund outflows quicken as US insurance to end

BOSTON, Sept 17 (Reuters) – 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.

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