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Money Funds Get ‘Micro Bailouts’ as Disclosure Rules Take Effect

Money funds are covering small losses on their investments to avoid unsettling clients when tighter U.S. rules will require them to disclose even small shortfalls.

Charles Schwab Corp., based in San Francisco, spent $132 million last quarter and Baltimore’s T. Rowe Price Group Inc. said it will spend $17 million this quarter to eliminate losses from securities that went sour in 2008. The deficits weren’t big enough to push the funds’ share prices below $1.