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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BSGrinder who wrote (55726)	4/12/1999 3:03:00 PM
From: Knighty Tin	Respond to of 132070

Kit, Runs on the other funds have no impact on the money funds. Each mutual fund, money or otherwise, is a separate corporation. Fidelity is just the manager, not the owner. An inability to collect margin debt is a possibility, but that deals mostly with the paper of some of the issuers, the large money center banks. Remember, they can borrow from the Fed short term and they will do so to avoid bankruptcy. And you cannot avoid bankruptcy without being able to roll your commercial paper. So, a margin shakedown in possible, but it shouldn't impact money funds in P1 paper. And most of the paper in the fund is not money center bank paper anyway.