Fed To Buy Frozen Money Market Assets

Show Me The Money

New Money Market Investor Funding Facility (MMIFF)

Fed To Buy Frozen Assets To Meet Redemptions from Money Market Accounts

Federal Reserve will help finance purchases of up to $600 billion in assets from money market mutual funds which have suffered redemptions from investors seeking the safety of government debt. The program start date should be announced by the end of this week. Holy Hell, what’s next?

Fidelity, Vanguard Join Treasury Program

Hail Mary Pass

Fidelity Investments, Vanguard Group and T. Rowe Price Group said they are joining the U.S. Treasury Department’s guarantee program for money-market funds, meaning all the major fund families will participate in the program.

Wednesday is the deadline to join.

The program, announced Sept. 19 in the midst of the largest-ever run on money-market funds, is intended to calm investors fears. It insures all money-market holdings as of Sept. 19 in the event any funds break the buck.

Gov. Protects Money Market Funds

Gov. to Protect Money Market Funds - Hopefully!?

September 23, 2008 – Vanguard web site

Treasury guaranty program for money market funds

On Friday, the U.S. Department of Treasury announced a planto temporarily guarantee the account values of money market funds (taxable and tax-exempt) as of the close of business September 19. Important details—including program participation fees—have yet to be determined. As of today, Vanguard has not decided whether any of our money market funds will participate. We will continue to monitor the details of the program as they become available.

Despite the recent market turmoil, Vanguard remains confident in the credit quality and liquidity of our money market funds. Your assets continue to be invested with prudence, emphasizing quality, diversification, and liquidity. And thanks to our expense ratio advantage relative to many other funds, our money market funds emphasize holding very high-quality securities while still providing a highly competitive yield.

Notes

• An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.
• Investments are subject to risks.
• The Department of the Treasury link will open in a new browser window. Vanguard accepts no responsibility for content on third-party websites.