Les Jones

Money market guarantees expire April 30, 2009

Friday, April 17th, 2009 | Economics |

Unsafe Money Market Guarantees Expire in April:

Notwithstanding the preceding statements, the T. Rowe Price money market funds are participating in the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds. The Program generally does not guarantee any new investments in the funds made after September 19, 2008, and is scheduled to expire on April 30, 2009.

And this:

If you think you are safe from an implosion in your money market, think again!  If you think you have no money market to worry about, think again!  If you have a brokerage account, then you probably have a money market.  Every brokerage treats uninvested cash balances different, but in general they are swept into a money market fund of the brokerage’s choosing.  In some cases, while the default behavior is to sweep the cash into a HIGH RISK MONEY MARKET, account holders can elect to choose only an FDIC insured sweep account instead.

If you are not worried about your cash balances, then you probably just don’t like cash.  If you are worried, then call your brokerage immediately, and demand that your cash be swept to only FDIC insured accounts.

Tags: banks

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