No real surprise here, but in case anyone with cash in a money market mutual fund was worried: The Treasury said today it would extend the federal guarantee of money fund assets through Sept. 18.
The guarantee program, put in place last fall as the credit crisis deepened, was to expire April 30 -- but almost nobody figured Uncle Sam would take it away this soon.
The guarantee was offered to the $3.8-trillion money fund industry after a large fund (the Reserve Fund) suffered losses on Lehman Bros. IOUs in September, triggering a run on that portfolio. The government feared that money fund investors would flee en masse.
The Treasury guarantee covers any cash investors had in money funds as of Sept. 19, 2008, but it doesn't apply to money added since then.
Money funds pay a small fee to the Treasury for the insurance coverage. All of the major mutual fund companies have joined the program.
-- Tom Petruno
Honda slashes pay in US
COLUMBUS (Ohio)HONDA Motor Co is offering voluntary buyouts, cutting workers' pay and imposing 13 non-production days at its North American plants to reduce its production this summer by 62,000 vehicles.
Honda spokesman Ron Lietzke said Tuesday that the buyouts will be offered to most of the Japanese automaker's 35,600 employees in the US, Canada and Mexico. He says enhanced retirement packages are also being offered.
Explore Howard Co.: GGP battered by more bad economic news
No talks till Pak cooperates: PM
Prime Minister Manmohan Singh reiterated his government's stand against resuming composite dialogue process with Pakistan till there were "visible signs" of forward movement in Mumbai terror attack investigations.
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