The latest – Neuberger Berman Management LLC, who said that the Boards of Trustees for all publicly offered Neuberger Berman and Lehman Brothers money market funds have approved the participation of the Funds in the U.S. Treasury Temporary Guarantee Program for Money Market Funds.
Under the program, the U.S. Treasury will guarantee investors $1.00 per share for each share held on September 19, 2008 of any eligible money market mutual fund that participates. The program will last until December 18, 2008, after which the U.S. Treasury may elect to extend it for an additional period, but not beyond September 18, 2009. The guarantee under the program could be triggered if a Fund’s net asset value falls below $0.995, commonly referred to as breaking the buck (see Treasury Opens Guarantee Program for Money Funds ).
Neuberger Berman notes that shares of a fund purchased after September 19 are not covered by the program, but shares held on September 19 that were subsequently will be covered if shares are subsequently repurchased in the same fund, up to the amount held on September 19. The program is subject to certain conditions, and the U.S. Treasury is the sole determiner of whether a money market fund making a claim has complied with the conditions (see Eligibility Requirements ).
To date Wilmington Trust (see Wilmington Trust to Participate in Treasury Guarantee Program ), UBS (See UBS to Apply for Money Market Guarantee Program ), Morgan Stanley (See MSIM Signs Up for Treasury Guarantee Program ), and Putnam (See Putnam Signs Up for Money Fund Guarantee Program ) have also decided to participate in the program.