"Money-market funds flock to guarantee program" Associated Press via BusinessWeek.com. The article says, "Treasury Department spokeswoman Jennifer Zuccarelli declined to specify how many firms applied for guarantees by Wednesday's deadline, but she said, 'We have seen significant interest.'" It continues, "Through Wednesday, the agency reported receiving $337 million from funds paying upfront fees to participate. For the vast majority of eligible funds, the fee is one 'basis point,' or $1 for each $10,000 in fund assets. Based on that fee level and the $337 million in fees paid, applications have been filed to cover virtually all the $3.4 trillion in money fund assets. On new money it quotes, "But even those new, uncovered investments 'are much safer than they were before the guarantee program,' said Peter Crane, president of Crane Data, publisher of the money-market fund newsletter, Money Fund Intelligence," says the AP. Other articles of interest: "U.S. Weighs Backing All Bank Deposits", "Reserve Aims to Liquidate 14 of Its Funds", "Q: Is My Money Fund Safe? A: Maybe", and "Reserve says its money funds seeking guarantees".
