Treasury Ends Money Market Fund Guarantee
Today, the Treasury announced the end of the Guarantee Program for Money Market Funds. According to the Treasury, risk of a “catastrophic failure” of the financial sector has receded, allowing some of the emergency funding and guarantee programs to sunset.
The program initially provided up to $50 billion for mutual fund insurance, but the Treasury did not spend any of the allocated amount. In fact, the Treasury earned around $1.2 billion from the program in the form of insurance coverage fees paid by mutual fund companies.
Visit Stimulus.org for a complete description of the Guarantee Program.