Today's Wall Street Jounal writes "Money Funds Begin to Cut U.S. Backing", saying, "The Treasury Department's guarantee program for money-market funds was welcomed as panic gripped the industry, but some fund firms now appear to be preparing to wean investors from the program. The guarantee program was instituted in September after Reserve Primary Fund's net asset value dropped to 97 cents a share, and investors began pulling money from prime money-market funds.... Since then, the program, which essentially ensures funds against 'breaking the buck' as the Primary Fund did, has been extended twice. It is set to run through Sept. 18. But fund companies aren't embracing it as they once did." It says, "Peter Crane, president and chief executive of Crane Data, says coverage from the program has, in effect, gone to about 75% from about 95% as funds don't renew for Treasury and some of their government money-market funds." Crane says, "But with prime money-market funds, that still make up the largest segment, participation remains virtually unanimous." In other news, see Standard & Poor's Peter Rizzo on Fox Business News. (Look for "Trends in Money Market Funds".)
