Fidelity and Vanguard Join Treasury Guaranty
Both Fidelity and Vanguard will participate in the U.S. Treasury Guaranty Program for Money Market Funds. Vanguard says, "Vanguard's money market funds will apply for the U.S. Treasury Department's program to support the account values of money market mutual funds. Trustees of the funds decided to participate in the program because they believe it is a helpful step toward stabilizing the credit markets in general, which should benefit investors in all money market funds." Vanguard CIO Gus Sauter says, "The program is one part of broader efforts to get the credit markets functioning more normally. It will remove some uncertainty in the minds of investors, and we think our shareholders will agree that taking part is the right thing to do. Frankly, Vanguard does not anticipate ever needing the Treasury's coverage, because we've always managed our money market funds with extreme prudence." Fidelity says, "Fidelity and the Trustees believe that it is in the interests of our fund shareholders to participate in the program. Even though it is highly unlikely that the insurance will be needed for any of our funds, we expect the program to reassure our investors that their money market funds will continue to provide safety and liquidity for their cash investments".
