MM funds to receive guarantees
Treasury to Guarantee Money Market Funds
Excerpts:
The Treasury Department said Friday morning that it would guarantee, at least temporarily, money market funds up to an amount of $50 billion in order to ensure their solvency.
“For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund — both retail and institutional — that pays a fee to participate in the program,” the Treasury said in a statement .
“Money market funds play an important role as a savings and investment vehicle for many Americans,” the Treasury said in statement.
Concerns about the value of money market funds falling below $1 have exacerbated global financial market turmoil and caused severe liquidity strains.
Comment: See yesterday's posting about this - "break the buck"
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