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What does the Report say about the Treasury Guarantee Program for Money Market Funds? Will this program become permanent?

April 26, 2017funds guarantee Money Market PERMANENT program report Treasury

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What does the Report say about the Treasury Guarantee Program for Money Market Funds? Will this program become permanent?

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The Temporary Guarantee Program was established during the market crisis of September 2008 and was authorized for one year. At that time, there was a need for such a temporary government program and, together with other measures taken to stabilize the market, it worked well to restore liquidity and raise investor confidence. The report recommends that the Temporary Guarantee Program be extended until September 18, 2009, and then be allowed to expire, as scheduled. The report’s recommendations will increase the resiliency of money market funds and thus allow the products to exist without the need for a federal insurance program.