"Guarantee for money-market funds facing renewal question" writes New York Daily News. The article says, "After The Reserve Primary Fund broke the buck ... two months ago, investors began to question the safety of all money market funds. Many pulled their cash out. What got them to return is the U.S. Treasury's Temporary Guarantee Program for Money-Market Funds, which is set to expire next month." It quotes our Peter Crane, who expects the guarantees to be extended. "It's almost certain to be renewed. December is too soon.... The big question would be: Is anyone bold enough to step out of the program?" NY Daily News adds, "Crane even sees a possibility that the program will be expanded" and speculates that there's a good chance that the program may eventually become permanent. In other news, Bloomberg writes "AIG, GMAC Help Drive Up Bank Rates Amid 'Insanity' for Deposits", which quotes Pete Crane on some of the highest bank rates, "These banks have to offer a higher rate than anyone else to get over the stigma attached to their names."
