US money funds shun Italian, Spanish banks

The six largest US money market funds have eliminated their lending to Italian and Spanish banks, reduced investments in French banks and are favoring Swiss securities for their $511 billion of assets.

Holdings of European bank certificates of deposit, repurchase agreements and commercial paper reported by the six largest funds managed by JPMorgan Chase & Co, Fidelity Investments, Federated Investors Inc, Blackrock Inc and the Vanguard Group Inc show they are shunning euro-region banks, according to data compiled by Bloomberg.