Investors stepped up their withdrawals from money market funds this week days before a federal guarantee to safeguard their assets expires on Friday, reports Reuters. The outflows could sharpen scrutiny of how to regulate the funds, which now hold $3,500bn despite paying almost no interest of late. Investors took out a total of $55bn from money market funds on Tuesday and Wednesday, far more than usual, according to fund-watcher Crane Data.

This entry was posted by Gwen Robinson on Friday, September 18th, 2009 at 4:55 and is filed under Capital markets. Tagged with Crane Data. Edit this entry.