Sixteen private colleges inIowa are among about 1,000 institutions across the country affected by a sudden freeze in withdrawals from a short-term investment fund managed by Wachovia Corp. For 34 years, private colleges and K-12 schools put their money in the now $9.3 billion fund, which offered returns slightly above U.S. Treasury bills. Institutions now face delays in getting their money back and may face losses.
To read The Des Moines Register article, click here
EARLIER: 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. The move has raised worries on some campuses about meeting payrolls and other obligations.
To read The New York Times article, click here.