This story appeared in Bank Digest.
The Guarantee Program for Money Market Funds expired on Sept. 18, 2009. The program was designed by the Treasury to stabilize markets after a large money market fund’s announcement that its net asset value had fallen below $1 per share (“broke the buck”) in the wake of the failure of Lehman Brothers in September of 2008. The program was initially established for a three-month period that could be extended up through Sept. 18, 2009. Treasury Secretary Tim Geithner noted, “The Guarantee Program for Money Market Funds served its purpose of adding stability to the money market mutual fund industry during market disruptions last fall and ultimately delivered a healthy return to taxpayers.”