America's Federal Reserve took further measures to boost liquidity by unveiling a plan to provide up to $540 billion to support money-market mutual funds. The funds, which are usually low-risk investments in short-term debt, have been troubled since the collapse of Lehman Brothers, which caused Reserve Primary to lose money for its investors, the first time such a fund had done so for 14 years. Around $500 billion has since been withdrawn from the market, which invests in commercial paper, certificates of deposit and other financial instruments. The Fed's facility creates five "special-purpose vehicles" that will buy instruments held by the funds.

 
Post is included in group: Realtors®
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: REMAX in Hawaii
Post is included in group: RE/MAX REAL ESTATE NETWORK
Post is included in group: The Lounge at Active Rain

2 Comments on $540 billion to support money-market mutual funds

OCT
29
2008
Localism Sponsor

good stuff Jim
11:07am • #1
Localism Sponsor

good stuff jim
12:05pm • #2

Leave a response…

(optional)
What does the graphic say?
 
Rainmaker_large

James G. Pycha (R), Kauai Estate Broker

Princeville, HI

More about me…

James Pycha (R) - REMAX KAUAI

Office Phone: (808) 826-9675

Cell Phone: (808) 639-2622

Email Me










Links

Archives

RSS 2.0 Feed for this blog

Find HI real estate agents and Princeville real estate on ActiveRain.