Updated from 8:51 a.m. EDT.The Federal Reserve said Friday it would extend non-recourse loans to depository institutions and bank holding companies to finance their purchases of high-quality, asset-backed commercial paper from money market funds to help them meet redemptions. With the move, the Fed joins the Treasury Department in trying to restore confidence to a market generally regarded as being almost as safe as cash. The Treasury established a temporary guaranty program for U.S. money market funds, saying it would insure for the next year the holdings of any publicly offered eligible money market mutual fund -- both retail and institutional -- that pays a fee to participate in the program. Details on the fee haven't been disclosed yet.
Funds Fighting to Stay at a Buck