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Justice Dept. Probes Lehman Collapse

Subpoenas Examine Disclosures, Conversations with Putnam, Other Fund Cos.

Reserve Throws in the Towel

Liquidates 18 Remaining Funds Soon After Applying for Treasury Guarantee

Money Market Funds Gain Another $49.39B

Majority Comes From Taxable Assets

Putnam Recruits Carney for Global Marketing Post

Previously Worked for Bank of America, Fidelity

Canadians Want More Reaction to Global Crisis

Despite World Slowdown, Canada Remains on Track for Growth

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Articles

Run on Money Funds Ends, But Investors Shift From Prime to Treasuries

Investors poured $19.64 billion into money market funds Wednesday, $26.2 billion Tuesday and $1.5 billion Monday, after yanking $186.6 billion, or 6.1%, out of money mar¬ket funds the five business days prior, according to Crane Data. By comparison, money market funds had given up just over $7 billion the pre¬vious week. Money fund assets, currently at $3.398 trillion, according to the Investment Company Institute, remain up by $178 billion, or 8.1% year-to-date and still show a huge increase-$529 billion, or 18.4%-over the trailing 52 weeks. The run on money market funds that had the Federal Reserve warn¬ing that credit markets were in danger of freezing up worldwide, appears to be over.

Independent RIAs Lead Retirement Income Race

NEW YORK - Fee-based independent advisers, so far, are winning the retirement income race, beating out mutual fund companies, brokerages and insurance firms in the quest to conquer the 77 million Baby Boomers' estimated $17 trillion in retirement savings and total $90 trillion net worth. The reason independent advisers are ahead of the game is simply because they are in the best position to provide personal attention and select the right mix of products for clients whose retirement income objectives are individual, complex and will increasingly include a comprehensive variety of advisory services-including guaranteed income, healthcare, long-term care, optimal tax management, estate planning and safely tapping into their home equity.

Firms Turn Spotlight on Risk Management

CHICAGO - It often takes an economic crisis before firms really start thinking about risk management. Theoretically, if risk management teams had done their homework, current market fluctuations and the subsequent ramifications wouldn't have come as a complete surprise. Unfortunately, even the best-prepared companies couldn't have predicted the depth of the current situation, what many are calling the worst since the Great Depression. 'Risk management is all about limiting surprises and meeting the changing needs of investors,' said James Mikolaichik, director of risk management for Old Mutual, at the Investment Company Institute's annual Tax and Accounting Conference recently held here. 'Risks are inherent in our business. Our goal is not to eliminate risk, but to identify, assess and manage our risks.'

Fidelity Reaches ARS Deal To Buy Back $300M

Fidelity Investments reached agreements with New York and Massachusetts officials to buy back at par $300 million of auction-rate securities from its customers by the end of the year, becoming the first retail brokerage firm to settle alleged fraudulent sales practices in the ARS market. New York Attorney General Andrew Cuomo and Massachusetts Commonwealth Secretary William Galvin separately announced the settlements on Sept. 12.

Run on Reserve Fund as NAV Breaks Buck

Investors began a run on The Reserve's Primary Fund last Monday when Lehman's bankruptcy news made them fearful about the money market funds' $785 million exposure to the investment bank's previously blue-chip commercial paper and medium-term notes that had fallen to zero value. On Tuesday, the oldest money market fund in the U.S. and previously one of the largest, announced the shocking news that it broke the buck, falling to 97 cents on the dollar.

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