money market mutual funds

Update on money fund guarantee program

Posted September 29, 2008 - 07:40 by Philip Brewer

Personal Finance

Seal of the US Department of the Treasury

The key thing to know about the Temporary Guarantee Program for Money Market Funds that the Treasury announced 10 days ago is that it only guarantees the money that you had in the money fund on that date. Any money you have in the fund that exceeds your balance on September 19th is not guaranteed--those shares are only worth their net asset value.

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Deposit insurance for money funds

Posted September 19, 2008 - 04:12 by Philip Brewer

Investment, Consumer Affairs

Early this morning, the Treasury announced deposit insurance for money market mutual funds, provided that the fund pays a fee. The money to provide the insurance will come from the Exchange Stabilization Fund (the government account holding the profits that the federal government realized when they seized everyone's gold in 1934).

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Money lost in money fund

Posted September 16, 2008 - 19:08 by Philip Brewer

Investment, Consumer Affairs

Ninety-seven cents on the dollar

For thirty years, people have treated money funds as being just as safe as a bank. On the rare occasions when money fund management made a bad investment, they've voluntarily coughed up enough money to make investors whole. Today, though, the money market mutual fund The Primary Fund (part of The Reserve Funds) announced that its shares, normally worth $1, were only worth 97 cents.

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