"Money fund firms withdrawing from Treasury program" writes Investment News. The article says, "Signaling greater stability in the credit markets, most of the major fund complexes offering Treasury money market funds have discontinued their participation in the federal guarantee program on those funds. According to Peter Crane, president of Crane Data LLC, a Westborough, Mass., research firm that focuses on the money market industry, the large fund firms dropping guarantees on Treasury money market funds are keeping the insurance on prime money market funds and money market funds that invest in non-government debt." IN continues, "Some observers expect the Treasury Department's guarantee program to end in September. The program was launched last September after a fund managed by The Reserve Management Co. Inc. of New York lost value and 'broke the buck,' causing panic in the money markets. Other observers, however, say it's too early to predict whether the program will be discontinued." It quotes Cary Carbonaro, president of Family Financial Research, "My clients are out of panic mode. It feels like some of the fear is gone. I don't see the insurance as having a huge value. In addition, the clients will be paying for it with a lower yield."
