No. of Recommendations: 4
Since you insist:


Earlier, AXA had a problem with a 20% loss in the NAV of a couple of money market funds, and had to bail them out.

Now Legg Mason Inc. and SunTrust Banks Inc. are propping up money-market funds to cushion them from possible losses on debt issued by structured investment vehicles.

Legg Mason invested $100 million in one of its money funds and arranged $238 million in credit for two others, the Baltimore-based company said in a Nov. 9 regulatory filing. SunTrust Banks Inc. received approval from regulators last month to protect two money funds that bought debt from Cheyne Finance Plc if the SIV is unable to repay the Atlanta-based bank.

The 10 largest managers of U.S. money funds have $50 billion in SIV debt, some issued by vehicles such as Cheyne that defaulted because of losses from securities linked to subprime mortgages, according to reports from the companies. At least four companies -- Legg Mason, SunTrust, SEI Investments Co. and Wachovia Corp. of Charlotte, North Carolina -- have stepped in to make sure their funds don't ``break the buck,'' or fall below the $1 a share net asset value that all funds seek to maintain.

Make sure your money market fund, if any, is invested solely in treasuries. No point in taking any unnecessary risk.

And given the problems with E-Trade, if I had an account there I would transfer it out elsewhere.

This stuff could get really messy. "

Too bad you did not notice the story and warn people. When the AXA funds had the problem, (August 2007) I had just gotten out of the hospital after a knee replacement. I do remember reading it, but I do not remember if I posted anything at that time or not. I also seem to remember that somebody else brought up the problem on a different board, but I do not know who or what board.

Again, I do not claim to be a financial genius, and it takes only minimal intelligence to read a news story and take obvious preventive action.

E-Trade looks OK now, but prudence is always advisable.
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