US Treasury to Guarantee Money Market Mutual Funds
Yahoo Finance: Treasury to Guarantee Money Market Mutual Funds
The Treasury Department announced Friday it will tap into a Depression-era fund to provide guarantees for the nation’s money market mutual funds.
The money to insure the mutual funds will come from the Treasury Department’s Exchange Stabilization Fund which was created in 1934 to provide support for the dollar.
When the assets in a fund fall below the $1 redemption level, investors in that particular fund would receive a notification that their fund would be covered by the insurance program.
Anything & everything is being done to contain Panic. Good.
Btw, I’ve seen the phrase ‘Depression era’ repeated so many times during this week that it feels like the events of this week are probably not likely to occur again in my lifetime.
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