Bank of America Corporation (NYSE: BAC) announced Monday it closed a $12 billion, enhanced money fund after major clients pulled-out amid losses on complex asset-back securities, including structured investment vehicles, Bloomberg News reported.

The Columbia Strategic Cash Portfolio was closed last week and is being "wound down," Bank of America spokesman Robert Stickler told Bloomberg News. Sticker said the fund's net asset value, which had been $33 billion two weeks ago, was 99.4 cents on the dollar as of Monday.

The fund was open to investors with a minimum investment of $25 million or more, The Wall Street Journal reported.

Economist Steve Affinito told BloggingStocks Monday that Wall Street's stance toward the Bank of America's stock will probably one characterized by relief:

"Nobody likes bad news, but the fact the BAC is trying to get ahead of the curve regarding bad investments will be treated fairly," Affinito said. "What is it they say, 'Wall Street appreciates candor almost as much as it appreciates good news.'? Well, today they got some more candor, and the Street will take it."

Shares of Bank of America were up $1.10 to $46.47 in late afternoon trading Monday.

Large investors in the Strategic Cash portfolio will be redeemed "in kind" -- meaning they will be handed their share of the underlying securities. Smaller investors can be redeemed in cash, The Journal reported.

Economic Analysis: Put this one in the category of "upside/downside." The downside: It's not pleasant seeing another investment fund close. The upside: First, the fund is expected to pay 99.4 cents on the dollar; i.e., a modest loss given the current state of SIVs. Second, it represents another instance of a bank/institution starting to get its financial house in order. Look for more middle/large banks and institutions to announce similar actions in the weeks ahead.