September 29, 2008 / 12:44 PM / 11 years ago

US Treasury opens money market guarantee program

WASHINGTON, Sept 29 (Reuters) - The U.S. Treasury Department said on Monday its temporary guarantee program for money market mutual funds was now in effect for at least three months.

The Treasury said each fund regulated by the Securities and Exchange Commission under rule 2a-7 that maintains a stable share price of $1 can now decide whether to participate in the program.

To receive the government guarantee, participating money market mutual funds that had a net asset value of $0.9975 or more per share on Sept. 19 must pay a fee of 1 basis point per share to the Treasury. Those with a net asset value below $0.995 on Sept. 19 are not eligible for the program. (Reporting by David Lawder; Editing by Theodore d’Afflisio)

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