Federal Reserve Stalls Money Market Fund Bailout

Will delay payments to fund holders until November 24

The Federal Reserve Board said November 10 that is delaying until November 24 its program under which JP Morgan Chase will purchase up to $540 billion in short-term debt instruments to prop up the once inviolate, now troubled, money-market fund business. The program, known as the money market investor funding facility, or MMIFF, was expected to be in place by the week of November 3 in order to allow money market funds to meet the redemption needs of the funds' investors.

Two smaller Fed programs are already functioning to shore up money-market funds.

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