Is your money market fund safe?

[screembloodymurder]

One of them just froze redemptions. In other words, you can't get your money out. This is how the run on the banks started in 1929. If this continues, it could get real ugly.

[murray hill farm]

1. Is a "money market fund" the same things as..

The money market account that i use as a savings account at my local bank (SunTrust)?

[screembloodymurder]

3. Yup.

Sentinel Management Group has been having difficulties meeting redemptions for investors, and has asked the government permission to halt them.

[DemocratSinceBirth]

6. There Are Different Types Of Money Market Accounts- Your Account Is Most Likely FDIC Insured

The money market account is most likely FDIC insured:





You are probably familiar with the traditional types of bank accounts - checking, savings, trust, certificates of deposit (CDs), and IRA retirement accounts - that are insured by the FDIC. Banks also may offer what is called a money market deposit account, which earns interest at a rate set by the bank and usually limits the customer to a certain number of transactions within a stated time period. All of these types of accounts generally are insured by the FDIC up to the legal limit of $100,000 and sometimes even more for special kinds of accounts or ownership categories. For more information on deposit insurance see FDIC brochure "Your Insured Deposits."


http://www.fdic.gov/consumers/consumer/information/fdiciorn.html

There are different types of money markets

[murray hill farm]

10. Thanks so much for that info.

The "money market fund" attention lately had me wondering if I should be concerned with my "money market account" or if they were the same, connected or what? I do have over $100,000 in that account, but now at least I can call the bank and ask about the FDIC limit on the account and not sound like a total idiot...ha! Thanks!

[Extend a Hand]

2. which fund?

do you have a link?

[screembloodymurder]

4. No, saw it on CNBC.

They report that the problem is "contained".

[Synnical]

5. US regulator says cannot grant Sentinel request to halt redemptions - CNBC

http://www.abcmoney.co.uk/news/142007118557.htm

````````````````````````````````````````
Published : Tue, 14 Aug 2007 17:44

WASHINGTON (Thomson Financial) - The US Commodity Futures Trading Commission is denying a request from Sentinel Management Group to halt redemptions from Sentinel's money-market fund, saying it lacks the authority, according to CNBC television.

Sentinel requested the halt because of problems meeting significant requests from clients.

There is unconfirmed talk on the street that many money market funds including BlackRock, Schwab, and Fidelity may have attempted to enhance their investment returns by purchasing low-quality debt instruments and now face withdrawal problems because they cannot value these assets in the current environment.

Thomson IFR Markets says, 'this is a scary development. If this problem spreads to Vanguard, Fidelity, and other large money market funds, funds with trillions of dollars, we shudder to think that we might see an old fashioned 'run on the bank'.'

Into early afternoon, Tuesday, the money markets had not encountered liquidity problems and the Federal Reserve did not inject any liquidity in the morning.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[DemocratSinceBirth]

8. Wow

Momey markets were supposed to be conservative investments that paid a smaller rate of return because the funds were invested in safer securities...

[jojo54]

7. Is this the beginning of the end?

Hub and I have funds in Fidelity. Guess it's time for that Scandinavian account.

[screembloodymurder]

9. No one knows.

Now I'm getting worried. Market action is looking bad. People who invested in MM accounts weren't speculators. This is BS! This is why we have regulators. On the bright side if we have an economic crisis, Bush won't last two weeks.

[Sequoia]

11. Is your monkey market fun-safe?

[wakemeupwhenitsover]

12. Sentinel Management asked to suspend redemption,

but the SEC didn't allow it. Also, the mice print on any money market account , FDIC insured or not, will have this disclaimer that the institution can ask the feds to suspend redemption. It doesn't mean that the SEC will agree.

If you read the mice print about the FDIC, you'll also read the bit about how the gov can basically take as long as they like to repay & then only up to $100,000.00