Tick, tock, tick, tock, tick, tock.
I am sure there will be litigation for losses to investors. They are correct to close the funds. The funds which remain have to be preserved to return to investors while funds remain. When the fund stabilizes Morgan and others will know the extent of the damage.
The nightmare of 2008 never ends.
The banks are out of control. They cannot manage their investments and are seeking criminal and corrupt ways. They are still playing with margins. The problem is the margins aren't margins, they are the margins of the margins and they haven't got control because there is no control to be had.
They are too big. Either that or their management is too few.
Why move to London? What for? This has had to play into the losses in the Morgan portfolio at some level and is the reason they needed experts. That is just a guess.
J P Morgan spokeswoman Kristen Chambers (click title to entry - thank you) said the New York bank's investment arm temporary closed the funds we think it will help prevent further dilution in yields, which is in the best interest of clients."
J P Morgan's move was first reported by Bloomberg News.
On Thursday the European Central Bank cut its main refinancing rate to a record low 0.75 percent in the wake of grim economic data. The lower rate could send investors looking for new places to put cash to work, such as in money funds.
But money fund managers are hardly looking for more cash from investors. U.S. fund operators have been squeezed by low interest rates and have slashed fees just to keep clients invested in the cash-management vehicles.
Operators of equity mutual funds often close the vehicles to new investors when managers have difficulties finding new places to invest cash. Peter Crane, publisher of the cranedata.com website, said money funds have also been temporarily closed in response to low interest rates, such as in 2009 and 2010 at several U.S. Treasury money funds.