In a move that bank trade groups applauded, the Treasury Department said Sunday that its plan to guarantee money market mutual funds would cover only the amounts held in those funds at the close of business Friday.

The Independent Community Bankers of America and the American Bankers Association welcomed the concession, saying it would eliminate the incentive for people to move money from bank accounts into the higher-yielding funds.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.