Wall Street Scene (2)
New York — Has the American Bankers Association's war on the money-market funds "backfired"? According to a spokesman for the Investment Company Institute, the more furor the banks create over the funds, the more money that comes pouring into the funds' coffers. "People are concerned that the government is going to freeze them out of the funds," the spokesman says, "so they are rushing to get in."
So far this year, the funds have increased their assets by $37 billion, or 50 percent, to $112.3 billion. Last week they absorbed another $3.2 billion and now have an average seven-day yield of 14.03 pe rcent. There are now 108 money-market funds.