Treasury To Guarantee Money Market Mutual Funds
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WASHINGTON — The Treasury Department says it will tap into a Depression-era fund to provide guarantees for the nation’s money market mutual funds.
Seeking to deal with a severe financial crisis, the department said today that for the next year the U.S. Treasury will insure the holdings of eligible 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, during the Depression, to provide support for the dollar.
