Tuesday, October 21, 2008
MMIFF'd
Yet another bailout instrument from the Fed is announced today—the Money Market Investor Funding Facility—offering $540B for struggling money market funds now tight on capital. The word is they are having problems honoring withdrawals in a timely way due to difficulties redeeming commercial paper in the current financial environment.
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2 comments:
Apparently, Treasury is now directing some funds towards commercial paper after shoring up the banks. I say help people like Joe the Plummer first.
That would be a refreshing change.
I've heard it once suggested that TAF money was being used for investing in oil/wheat/metal/commodities--rather than as a replacement for commercial paper--but haven't seen anything that substantiates it.
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