The bank ceased allowing withdrawals on three funds because it could no longer value the assets in those funds. The basis for this situation? Ans: the sub-prime melt down in the US.

“BNP Paribas SA, France’s biggest bank, halted withdrawals from three investment funds because it couldn’t “fairly” value their holdings after U.S. subprime mortgage losses roiled credit markets.

The funds had about 1.6 billion euros ($2.2 billion) of assets on Aug. 7, after declining 20 percent in less than two weeks, spokesman Jonathan Mullen said today. The bank will stop calculating a net asset value for the funds, which have about a third of their money in subprime securities rated AA or higher.

BNP’s announcement sent its shares down as much as 5.5 percent….”

The article goes on to report two more instances of banks/brokerage firms halting withdrawals:

“Union Investment, Germany’s third-biggest mutual fund manager, stopped withdrawals from one of its funds on Aug. 3 after investors pulled about 10 percent of the assets. Frankfurt Trust, the mutual fund manager of Germany’s BHF-Bank, halted redemptions from a fund after clients removed 20 percent of their money since the end of July.

Two hedge funds run by New York-based Bear Stearns filed for bankruptcy protection in the Cayman Islands on July 31 following subprime losses. The New York-based securities firm then blocked investors from withdrawing money from a third fund.”

Here is a link to the whole article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNIJ.UO9Pzxw&refer=worldwide

Although I attempt to refrain from direct advice, I will make this one exception. My investment advice for anyone who cares to read it: 6 month T-Bills.

Mike