The Securities and Exchange Commission issued a statement clarifying the accounting treatment for money market mutual funds amid the growing turmoil in the financial markets.
The SEC's Office of the Chief Accountant said that bank support of money market mutual funds generally does not result in a requirement to present the fund on the balance sheet. Some money market funds have become exposed to declines in the credit worthiness of some troubled assets, noted the SEC. To protect investors’ principal investment in these funds, some sponsoring financial institutions have stepped in to provide various types of financial support.
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