Money Market Fund Guarantee Expires
Because as we all know, no more Money Market funds have their assets tied in with major Bank Holding Companies whose pristine credit rating is the one and only criteria for permissive investment in balance sheets loaded up with toxic loans yet backstopped by the very same taxpayers who will lose everything if they demand transparency. The Treasury and the Fed have now uncovered a neat way for unwitting US citizens to hold the gun of Mutual Assured Destruction against their own heads if they demand transparency and thus yet another round of "catastrophic failure." In other words, no bucks will be broken unless HR1207 passes. Demand Fed accountability at your own peril.
From the Treasury Department:
Treasury Announces Expiration of
Guarantee Program for Money Market Funds
Program Winds Down as anticipated, Generates $1.2 billion in participation fees for U.S. Taxpayers
The U.S. Department of the Treasury today announced that the
Guarantee Program for Money Market Funds (the "Program") will expire
today. The Program was initially established for a three-month period that could be extended up through September 18, 2009. Since inception, Treasury has had no losses under the Program and earned approximately $1.2 billion in participation fees.
"As the risk of catastrophic failure of the financial
system has receded, the need for some of the emergency programs put in
place during the most acute phase of the crisis has receded as well,"
said Treasury Secretary Tim Geithner. "The Guarantee Program for Money
Market Funds served its purpose of adding stability to the money market
mutual fund industry during market disruptions last fall and ultimately
delivered a healthy return to taxpayers."
Treasury designed the Program to stabilize markets after a large
money market fund's announcement that its net asset value had fallen
below $1 per share ("broke the buck") in the wake of the failure of
Lehman Brothers in September of 2008. Maintaining
confidence in the money market mutual fund industry was critical to
protecting the integrity and stability of the global financial system.