"Money-Market Funds: Now a Safer Haven" writes Kiplinger.com and featured on WashingtonPost.com. The piece says, "Money-fund shareholders, mainly institutions, became concerned about potential losses and withdrew slightly more than $133 billion from Reserve Primary and other funds between September 16 and September 19. Regulators worried that this could turn into a Depression-style run on the funds. That might have led to a 'full-scale meltdown,' says Peter Crane, president of Crane Data, which tracks money funds. To prevent a run ... the Treasury Department announced it would create a temporary insurance system for money funds.... The insurance, which covers assets in money funds as of September 19, will last for a year and will be available to both taxable and tax-free money-market funds that pay the required fee. The fee hasn't been set yet, but it will be based on a fund's assets." See also, "Boston Fed leads loan plan to ease money market fund woes."
