Bush authorizes ESF to back some money market funds

WASHINGTON (Reuters) - President George W. Bush on Monday authorized the Treasury Department to use money from the Exchange Stabilization Fund to back some money market mutual funds, according to a memorandum released by the White House.

"I approve the use of funds from the Exchange Stabilization Fund as a guaranty facility for certain money market mutual funds," Bush said in the memorandum to Treasury Secretary Henry Paulson.

It said this memorandum supersedes a similar one Bush signed earlier this month. The Treasury said on September 19 it would use $50 billion to back such funds who asset values fall below $1, another step aimed at containing the market turmoil.

(Reporting by Jeremy Pelofsky; Editing by Carol Bishopric)