Treasury Announces Guaranty Program for Money Market Funds
September 19, 2008
hp-1147
Treasury Announces Guaranty Program for Money Market Funds
Washington- The U.S. Treasury Department today announced the establishment of a temporary guaranty program for the U.S. money market mutual fund industry. For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund – both retail and institutional – that pays a fee to participate in the program.
President George W. Bush approved the use of existing authorities by Secretary Henry M. Paulson, Jr. to make available as necessary the assets of the Exchange Stabilization Fund for up to $50 billion to guarantee the payment in the circumstances described below.
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. Maintaining confidence in the money market fund industry is critical to protecting the integrity and stability of the global financial system.
Concerns about the net asset value of money market funds falling below $1 have exacerbated global financial market turmoil and caused severe liquidity strains in world markets. In turn, these pressures have caused a spike in some short term interest and funding rates, and significantly heightened volatility in exchange markets. Absent the provision of such financing, there is a substantial risk of further heightened global instability.
Maintenance of the standard $1 net asset value for money market mutual funds is important to investors. If the net asset value for a fund falls below $1, this undermines investor confidence. The program provides support to investors in funds that participate in the program and those funds will not "break the buck".
This action should enhance market confidence and alleviate investors' concerns about the ability for money market mutual funds to absorb a loss. Investors in money market mutual funds with a net asset value that falls below $1 would be notified that their fund triggered the insurance program.
The Exchange Stabilization Fund was established by the Gold Reserve Act of 1934. This Act authorizes the Secretary of the Treasury, with the approval of the President, "to deal in gold, foreign exchange, and other instruments of credit and securities" consistent with the obligations of the U.S. government in the International Monetary Fund to promote international financial stability. More information on the Exchange Stabilization Fund can be found at http://www.treas.gov/offices/international-affairs/esf/.
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Treasury Designates Iranian Military Firms
September 17, 2008
HP-1145
Treasury Designates Iranian Military Firms
Washington - The U.S Department of the Treasury today designated six Iranian military firms that are owned or controlled by entities previously designated for their roles in Iran's nuclear and ballistic missile programs, including Iran's Ministry of Defense and Armed Forces Logistics (MODAFL) and Defense Industries Organization (DIO).
"Iran attempts to shield its procurement activities behind a maze of entities, essentially hoodwinking those still doing business with Iran into facilitating illicit transactions for the transport of dual use, missile-related items," said Stuart Levey, Under Secretary for Terrorism & Financial Intelligence.
Iran Electronics Industries , Shiraz Electronics Industries , Iran Communications Industries , Iran Aircraft Manufacturing Industrial Company , Farasakht Industries, and Armament Industries Group were designated today pursuant to Executive Order 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction and their supporters, and at isolating them from the U.S. financial and commercial systems. Designations under E.O. 13382 are implemented by Treasury's Office of Foreign Assets Control and they prohibit all transactions between the designees and any U.S. person, and freeze any assets the designees may have under U.S. jurisdiction.
Treasury prepared these designations in close coordination with the Commerce Department's Bureau of Industry and Security as well as the Justice Department. The designations complement Commerce's and Justice's criminal investigation of Iranian procurement front companies.
Iran Electronics Industries , as well as two subsidiary organizations, Shiraz Electronics Industries and Iran Communications Industries , are being designated because they are owned or controlled by Iran's MODAFL. MODAFL, which was designated under Executive Order 13382 on October 25, 2007, controls other previously designated entities DIO, and Aerospace Industries Organization, which is the overall manager and coordinator of Iran's missile program.
Iran Electronics Industries (IEI) offers a diversified range of military products including electro-optics and lasers, communication equipment, telecommunication security equipment, electronic warfare equipment, new and refurbished radar tubes, and missile launchers. IEI manufactures military tactical communication systems and also electronic field telephones and switchboards. IEI also manufactures night vision systems and laser range finders in addition to binoculars and periscopes.
Shiraz Electronics Industries is engage in the production of various electronics equipment for the Iranian military, including radars, microwave electron vacuum tubes, naval electronics, avionics and control systems, training simulators, missile guidance technology, and electronic test equipment.
Iran Communications Industries (ICI) is Iran's leading manufacturer of military and civilian communication equipment and systems. ICI offers more than seventy-five products, including tactical communications and encryption systems that meet a wide range of the Iranian military's requirements.
Iran Aircraft Manufacturing Industrial Company (HESA) is being designated because it is owned or controlled by MODAFL, and also because it has provided support to the Iranian Revolutionary Guard Corps (IRGC). The IRGC, which was designated under Executive Order 13382 on October 25, 2007, is considered to be the military vanguard of Iran and has been outspoken about its willingness to proliferate ballistic missiles capable of carrying WMD.
HESA utilizes its own facilities for the inspection, maintenance, repair overhaul research, development, and manufacture of military and civilian aircraft and related military logistic systems. HESA conducts research on, development of, production of, and flight operations for unmanned aerial vehicles (UAVs) in Iran. The IRGC utilizes the "Ababil" UAV, manufactured by HESA. HESA produces different variants of the Ababil UAV, which can be used for surveillance and attack. Farasakht Industries is a subsidiary of HESA that specializes in the manufacturing of various aerospace tools and equipment.
Armament Industries Group is also being designated because it is owned or controlled by and acts on behalf of Iran's DIO. Armament Industries Group is directly subordinate to DIO and is known to manufacture arms such as gun howitzers, multiple rocket launchers, sniper rifles and a variety of machine guns. DIO was designated under Executive Order 13382 on March 30, 2007, for having engaged in activities that materially contribute to the development of Iran's nuclear and missile programs.
Identifying Information
ARMAMENT INDUSTRIES GROUP
AKA:
"AIG-Armament Industries Group"
Addresses:
Pasdaran Ave., P.O. Box 19585/777
Tehran, Iran
Sepah Islam Road, Karaj Special Road Km 10, Iran
FARASAKHT INDUSTRIES
Address:
P.O. Box 83145-311, Kilometer 28, Esfahan -- Tehran Freeway
Shahin Shahr, Esfahan, Iran
IRAN AIRCRAFT MANUFACTURING INDUSTRIAL COMPANY
AKAs:
HESA
Hava Peyma Sazi-E Iran
Hevapeimasazi;
Havapeyma Sazi Iran
Havapeyma Sazhran
Iran Aircraft Manufacturing Industries
Karkhanejate Sanaye Havapaymaie Iran
Iran Aircraft Manufacturing Company
IAMCO
IAMI
HESA Trade Center
Address:
P.O. Box 83145-311, 28 km Esfahan -- Tehran Freeway
Shahin Shahr, Esfahan, Iran
Shahih Shar Industrial Zone Isfahan, Iran
P.O. Box 81465-935, Esfahan, Iran
