The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Reserve Email Routing List Email & Route  Print Print
Tuesday, September 22, 2009

Reserve "Not a Ponzi Scheme," Says Galvin

News summary by MFWire's editors

Shareholders of the Reserve Primary Fund may have to wait a little longer to get their final payout check. Massachusetts Secretary of State William Galvin is fighting the distribution plan, arguing that a clawback of funds previously paid to shareholders in the Reserve fund is unfair.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

Galvin made his case in a letter sent to U.S. Judge Paul Gardephe, who is overseeing the case in Manhattan Federal bankruptcy court. Galvin oversees the state's securities division.

According to excerpts of the letter published by the Boston Herald, Galvin's office is "very concerned" for those Massachusetts investors who redeemed their shares before it was frozen a year ago. He points out that those investors did not profit from the fund's collapse and only received a dollar for dollar return on their holding.

"This is not a Ponzi scheme," Galvin wrote. The letter stated that 2,209 Massachusetts investors held some $2.1 billion in the fund.

Meanwhile, SEC spokesman John Nester told the Wall Street Journal that the Commission does not endorse a clawback though it allows for the possibility as part of its efforts "to get investors back their money as quickly and fairly as possible." 

Edited by: Sean Hanna, Editor in Chief

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use