"The Reserve’s plan is ingenious," Ropes & Gray attorney Harvey J. Wolkoff tells the NY Times
. "Their plan is that their own investors reimburse them for their wrongdoing." Reporter Diana Henriques delves into the dilemma faced by shareholders in the Reserve Primary Fund
: Do they take 98 cents on the dollar or spend the fund's cash by fighting for more? (See the plan MFWire
, December 4, 2008). Henriques writes that Reserve's plan is "brazen" and extracts a memorable quote from BU legal prof Tamar Frankel who tells her that "This is a very smart thing they have done. It pours not only ice water but ice on any claims."
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
Stay ahead of the news ... Sign up for our email alerts now