"Money Funds Re-Up Treasury Guarantee, Despite Cost" writes ignites.com. The article says, "With a deadline looming, a number of large fund firms have announced they will re-enroll in the Treasury's money market insurance program despite its costs for funds battling to control expenses amid the market downturn. The majority of shops that initially enrolled in the Treasury's $50 billion guarantee for money market funds are expected to stay with the program. Leaving the program would preclude these shops from rejoining in the future." It adds, "Invesco Aim, Legg Mason, Federated, Dreyfus and UBS are among the funds that have decided to continue with the Treasury program, according to spokespeople for the firms and SEC filings. T. Rowe Price, Fidelity, Vanguard, Hartford and Oppenheimer say they will soon announce whether they will stay in the program, but industry sources don't see them leaving." The piece quotes Peter Crane, "I doubt anyone will be bold or stupid enough to shed the protection at this point. If they do, they'll likely hear a giant sucking sound -- investors leaving."

Email This Article




Use a comma or a semicolon to separate

captcha image