Treasury Proposes to Guarantee Money Funds in Stimulus
- Mnuchin seeks authority stripped by Congress after 2008 crisis
- Unclear if 2016 fund reforms are fully protecting industry
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The U.S. Treasury Department proposed to temporarily guarantee money market mutual funds with taxpayer dollars as part of its coronavirus stimulus plan, according to a document obtained by Bloomberg News.
In a proposal sent to lawmakers early Wednesday, the department laid out plans to temporarily permit use of its exchange stabilization fund to guarantee money markets, according to the document.