First Look at Treasury Plan; Money Market Fund Bailout

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Given the state of the capital markets and the heretofore limited success of prior initiatives aimed at stabilizing

these markets, the Bush administration has proposed legislation to grant the Treasury Secretary broad authority

to purchase up to $700 billion of non-performing, hard to value real estate and mortgage related assets and securities from financial institutions in order to strengthen their financial position and allow for additional liquidity in the financial system.

In addition, in response to announcements by certain money market funds that have experienced losses threatening their ability to return investor funds based on a net asset value of $1.00, the Treasury has indicated it will begin to guaranty, on a temporary basis certain U.S. money market funds.

For more information, please read full news bulletin.

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Published In: Administrative Agency Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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