The Federal Reserve has announced the creation of the Money Market Investor Funding Facility (MMIFF) which will support a private-sector initiative designed to provide liquidity to U.S. money market investors.
The short-term debt markets have been under considerable strain in recent weeks as money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. By facilitating the sales of money market instruments in the secondary market, the MMIFF should improve the liquidity position of money market investors, thus increasing their ability to meet any further redemption requests and their willingness to invest in money market instruments. Improved money market conditions will enhance the ability of banks and other financial intermediaries to accommodate the credit needs of businesses and households.
The Treasury Department has been busy too:
The U.S. Treasury Department today announced that PricewaterhouseCoopers LLP and Ernst & Young will assist the Department in the implementation of the Troubled Asset Relief Program authorized under the Emergency Economic Stabilization Act.
The firms will help the Department with accounting and internal controls services needed to administer the complex portfolio of troubled assets the Department will purchase, including whole loans and mortgage backed securities. PricewaterhouseCoopers will help the Department establish a sound internal control posture and Ernst & Young will provide general accounting support and expert accounting advice.
The initial orders are worth $191,469.27 and $492,006.95, respectively.
The U.S. government and governments around the world are making a heroic effort to fix the financial system - and the credit markets continue to show signs of life again.
I completed a draft for an article concerning corporate governance and executive pay for an Indian business journal called, "The Human Factor." I titled the article, "Corporate Governance in the Age of Transparency." Here is a preview:
New regulations were formed and passed, the pressure mounted, and Boards of Directors started to get more involved in their companies – mostly to protect their own backs. However, they were still willing to pay the CEO a ridiculous sum to sit in the saddle. The current crisis has brought that to an end. The age of outsized fees for Directors and CEOs seems to be over. Everyone will now be publicly observed and scrutinized. The Age of Transparency is upon us.
Thank you for sharing. Not to many people in your position are so gracious. Your article was very poignant and understandable. It helped me to understand very clearly. Thank you for your help.
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Posted by: share tips | June 02, 2011 at 02:26 AM