The Reserve Primary Fund
and Government Fund
shareholders should receive their first dose of cash within the next several weeks. Spokeswoman Ming Hatch confirmed that the New York-based company plans to distribute the cash holdings of the Primary Fund, about $25 billion, by the end of next week, with the cash holdings of the Government Fund, about $3 billion, following suit a week or two later. That will leave about $32 billion total left in the two funds to eventually distribute, as the Reserve sells securities and receives interest.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
The Primary Fund broke the buck a month ago due to some debt securities it held from then-freshly-bankrupt Lehman Brothers
, September 17, 2008), and Bent and Co. decided to liquidate the fund two weeks later (see MFWire
, September 30, 2008). Shortly thereafter, the Reserve decided to liquidate the government fund as well (see MFWire
, October 2, 2008). The Reserve delayed the Primary Fund distribution last week (see MFWire
, October 14, 2008).
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