Quote:
Originally Posted by mikey2
I called Fidelity today and the guy I spoke with knew exactly what I was talking about and confirmed the MM accounts wouldn't have protection after today.
Mikey.
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Thanks to your post, I contacted Fidelity again and spoke to a different rep.
She knew exactly what I was talking about (though I myself wasn't quite sure what I was talking about)
The coverage that was in place was a U.S. Treasury Temporary Guarantee Program for Money Market Funds which guaranteed dollar-for-dollar value in the MM fund. Without this coverage, MM funds can fall below $1 per share, and however low it goes, that's what you'd get if you sold at that point. Fidelity has not been in the guarantee plan since April. MM accounts at banks are covered by FDIC insurance (if that's any comfort to anybody out there)
The funds still carry SIPC insurance up to $500K max (cash reserves 100K max). If I understood correctly, anything above that max amount would be covered by Lloyds of London. If you have money with an investment company, be sure to check with your own company on specifics.
To clarify my earlier post, the FDIC insrance that will be coming to Fidelity will be only for the CDs that Fidelity purchases from banks, not for any of their funds.
Thanks again, Mikey. Can't remember if I rep'd you, but will check right now.
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