As of Sept. 18 money market funds are no longer govt-secured

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As of Sept. 18 money market funds are no longer govt-secured

Monday, September 21st, 2009 | Economics |

Reuters - Money fund outflows quicken as US insurance to end

BOSTON, Sept 17 (Reuters) - Investors stepped up their withdrawals from money market funds this week days before a federal guarantee to safeguard their assets expires on Friday, industry data show.

The outflows could sharpen scrutiny of how to regulate the funds, which now hold $3.5 trillion despite paying almost no interest of late. Investors took out a total of $55 billion from money market funds on Tuesday and Wednesday, far more than usual, Peter Crane, president of fund-watcher Crane Data LLC, said in an interview.

Tags: investing

1 Comment to As of Sept. 18 money market funds are no longer govt-secured

Where do you put money if you’re concerned about bank failures? | Les Jones
September 24, 2009

[...] it in your mattress where robbers and fire can take it. Bear in mind that the government recently stopped its temporary protection of money market accounts, so you may want to move money markets to an FDIC [...]