The Big Money Funds Strike Back

Last week's announcement by Dreyfus Corp. that it wanted to start its own national bank escalated the war between banks and money-market funds to win consumers' savings. Banks are already well on their way to becoming more like the money funds. Under a bill signed by President Reagan last month, the banks will soon be permitted to offer a new product that will pay as much interest as the banks

care to shell out on deposits that perhaps may be as small as $2,500. Said Citicorp Chairman Walter Wriston: "I think it's terrific." Dreyfus,...

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