US launches major rescue plan for fragile financial sector

Business Materials 19 September 2008 17:28 (UTC +04:00)

The United States on Friday unveiled part of a massive plan to help resolve the ongoing US financial crisis, setting up a 50-billion-dollar guarantee programme for the money-market industry, the US Treasury announced.

The new programme aims to ease concerns of consumers who had been pulling their money out of money markets in response to the financial turmoil of this week, reported dpa.

"Money market funds play an important role as a savings and investment vehicle for many Americans; they are also a fundamental source of financing for our capital markets and financial institutions," Treasury Secretary Henry Paulson said in a statement.

"Maintaining confidence in the money market fund industry is critical to protecting the integrity and stability of the global financial system."