Thursday, October 02, 2008

Bank Limits Fund Access by Colleges, Inciting Fears -

Getting closer to home. Just another example of how contagion rears its ugly head and problems can spread quickly through the global economy.

Bank Limits Fund Access by Colleges, Inciting Fears -
"In a move suggesting how the credit crisis could disrupt American higher education, Wachovia Bank has limited the access of nearly 1,000 colleges to $9.3 billion the bank has held for them in a short-term investment fund, raising worries on some campuses about meeting payrolls and other obligations.

Wachovia...agreed this week to sell its banking operations to Citigroup, has held the money in its role as trustee for a fund used by colleges and universities and managed by a Connecticut nonprofit, Commonfund.

On Monday, Wachovia announced that it would resign its role as trustee of the fund, and would limit access to the fund...."
Before anyone asks, I have no idea and am not involved in any way with SBU's finances, other than through our student run money in SIMM (Students in Money Management). For the record on that, the donated portion is down approximately 14% since its summer high. The $100,000 of University endowment money which we gained access to over the summer is still in cash. [Somewhat related, last week the University filmed a tv commercial featuring SIMM, I have a copy but am not sure how to share it.] Stay tuned

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