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Fed Study: 21 Funds Needed Support During Financial Crisis

A recent study by the Federal Reserve Bank of Boston identified at least 21 money market funds that would have broken the buck if they hadn't received sponsor support during the financial crisis.  The Fed reviewed 341 funds' annual financial statements covering the period of 2007 to 2011.  The estimate of 21 funds was, according to the Fed, "based on conservative assumptions of asset levels" and included instances where a fund's sponsor made a cash contribution or an outright purchase of a security at above-market price.  The report comes two weeks before the SEC reportedly will vote on whether to submit a money market fund reform proposal to the public for comment.