by Calculated Risk on 9/18/2008 01:24:00 PM

From Bloomberg: BNY Mellon Institutional Cash Fund Hit by Lehman Debt Losses (hat tip Kevin Jesse)

An institutional fund run by Bank of New York Mellon Corp. designed to work like a money-market account fell to less than $1 a share after losses on debt issued by bankrupt Lehman Brothers Holdings Inc.

The $22 billion BNY Institutional Cash Reserves fell to $0.991 a share on Sept. 16, according to an e-mail sent by a bank representative to one client. BNY Mellon has ``isolated the Lehman assets in the fund into a separate structure,'' Ivan Royle, a spokesman for the New York-based company, said today ...

From Reuters: Putnam shuts $15 billion money market fund

Asset manager Putnam Investments said on Thursday that it had closed its $15 billion Prime Money Market Fund due to redemption pressures.