NEW YORK  Morgan Stanley (MS) clients withdrew a net $46 billion from money-market accounts last month, forcing the embattled investment bank to buy $23 billion of securities from the funds to help them meet redemptions. According to its quarterly results, filed with the Securities and Exchange Commission, customers withdrew cash from money-market and liquidity funds as the breakdown of capital markets raised doubts about the future of Wall Street. The September cash flight followed net inflows of $8 billion the three months ended Aug. 31, Morgan Stanley said in the filing. Morgan Stanley purchased securities from its money market funds because a wide range of money market instruments were impossible to trade. The firm said it bought highly rated, short-term commercial paper, municipal bonds, certificates of deposit and notes for its own books. Such purchases could result in losses for Morgan Stanley in future periods, if the recent past is any guide. Morgan Stanley reported $10 million of third-quarter losses on securities it previously purchased from structured investment vehicles, or SIVs. The past nine months, the bank has recorded $283 million of losses related to SIVs. In the second half of last year, a breakdown in commercial paper markets led to plunging prices and rating downgrades of securities issued by SIVs, which are off-balance-sheet funds. Various Morgan Stanley funds had invested in SIV securities, which aim to borrow at lower short-term rates and lend at higher longer-term rates. As it did with the money markets, Morgan Stanley purchased $900 million of securities from SIVs last year, plus $217 million during the nine months ended Aug. 31, the bank said. The normally staid money-market fund industry was roiled after Lehman Brothers Holdings went bankrupt last month. A day after the No. 4 investment bank filed for bankruptcy, the $63 billion Reserve Primary Fund wrote off $785 million of Lehman debt, which led the fund's value to fall below $1 per share — "breaking the buck" — and sparked a run on other money market funds. Since then, the government has offered to insure money market mutual funds and last week, the Federal Reserve announced a $540 billion Money Market Investor Funding Facility to prop up funds. Copyright 2008 Reuters Limited. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more