WASHINGTON AP-The Treasury Department and the Federal Reserve announced separate actions Friday designed to bolster $2 trillion of assets in money market funds, which had come under threat from one of the worst financial crises in decades.
The Treasury said it will tap into a $50 billion fund created during the Depression to provide guarantees for the money market assets. The Fed said it will expand its emergency lending efforts to allow commercial banks to finance purchases of asset-backed paper from money market funds. The central bank’s move should help the funds to meet demands for redemptions.
