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"