The Treasury Department said Monday that it is extending its temporary guarantee program for money market funds until April 30.
The program was unveiled this year to cover shareholders up to the amounts they held in participating money market funds as of the close of business on Sept. 19. It was created after a Reserve Management Corp. money market fund broke the buck, or fell below $1 a share. Since the guarantee program was created, no other money market fund has broken the buck.
Without this extension, the program would have expired Dec. 18.
The Treasury said Monday that all money market funds participating in its guarantee program and meeting the extension requirements can continue to participate but that no new funds may enter the program.
Funds that wish to continue participating must submit a program-extension payment and notice by Dec. 5. The amounts of the extension payments will be based on a fund's net asset value as of Sept. 19.
The Treasury secretary may extend the program until Sept. 19, 2009, but so far no decision has been made beyond April.