Friday, August 12, 2011

U.S. Money Funds Diss Italian, Spanish Banks

The six largest U.S. money market funds have eliminated their lending to Italian and Spanish banks, reduced investments in French banks and are favoring Swiss securities for their $511 billion of assets.

Holdings of European bank certificates of deposit, repurchase agreements and commercial paper reported by the six largest funds managed by JPMorgan Chase & Co. , Fidelity Investments, Federated Investors Inc., Blackrock Inc. and the Vanguard Group Inc. show they are shunning euro-region banks, according to data compiled by Bloomberg.

European bank shares tumbled to the lowest since March 2009 on Aug. 10, led by Paris-based Societe Generale SA, amid concern that France’s creditworthiness was in doubt. U.S. prime money funds have reduced European debt holdings by $38 billion to $340 billion in July, according to an Aug. 9 report by JPMorgan….

Read more at http://www.bloomberg.com/news/2011-08-12/u-s-money-funds-shun-italian-spanish-banks-for-swiss-assets.html

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