Posted on 12/18/2008 7:50:31 AM PST by BGHater
The funds arm of Swiss bank Credit Suisse plans to quit managing U.S. money-market funds and is liquidating three funds that have about $8 billion in assets, according to regulatory filings.
The funds being shut are the $6.9 billion Prime Portfolio, the $581 million Government Portfolio and the $574 million Cash Reserve Fund, filings by the funds on Dec. 15 to the Securities and Exchange Commission show.
The funds said in the filings the reason for the liquidations was that Credit Suisse Asset Management "intends to cease managing U.S. money market funds in the near future." The funds are expected to be liquidated in early 2009 and will be closed to new investors from Dec.22, the filings said.
The winding up of the Cash Reserve Fund requires approval of the fund's shareholders, they said.
"We have decided to wind these funds down to focus and invest in areas where we have scale and can deliver competitive advantages, in line with our overall asset management strategy," Credit Suisse spokesman Bruce Corwin said in an emailed statement on Wednesday.
(Excerpt) Read more at cnbc.com ...
Who can blame them? And now, an anti-capitalist socialist in the White House, and a socialist-dominated Congress — I would bail out too.
Moron liberal voters.
French?
I can see it. Credit Suisse looks like it could serve crepes.
With rates on short term notes approaching zero, its impossible for them to charge any fees to manage certain of the funds. I have no use for this firm, but they’d be stupid to operate at a loss.
Maybe Detroit should have pulled the plug on unprofitable car lines rather than operating them at a loss and now coming to us, the taxpayers, with palms out....
You’ve got the correct answer.
The side-effect of ZIRP is that a bunch of money market funds might end up having negative yields unless the managers slash their management fees to almost nothing.
CS decided they weren’t going to play the game, so they’re pulling out.
BS, they lost their A** in the melt down like everybody else.
I can’t find any announcements of write downs. Do you have the source?
Why would there be write downs, no one knows the true loss yet, they are cutting and running. But they were active in the credit default BS.
Thanks for digging this source out for us. I was expecting something from London or Paris.
Those are further writedowns according to the article.
“Credit Suisse has so far written down 5.8 billion francs...”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.