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

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

Rating:The Reserve Claims Primary Wasn't Alone Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, September 07, 2010

The Reserve Claims Primary Wasn't Alone

News summary by MFWire's editors

One of the Reserve's [see profile] defenses in a class-action shareholder suit is claiming that the Primary Fund wasn't the only money market mutual fund to break the buck after Lehman Brothers collapsed in September 2008. Dow Jones' Daisy Maxey reports on that claim, revealed Friday in just-released court documents. Meanwhile, the Reserve tweaks its two big liquidating funds.

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

Primary "was not the only money-market fund to break the buck," Reserve's attorneys reportedly claim in one court filing, noting that large fund firms with large amounts of cash stepped in to other money funds to prevent any dips below $1 NAV (i.e. breaking the buck).

Peter Crane, whose Crane Data reports on money fund news and gathers money fund data, countered that other fund firms rescued their funds "long before the NAV rounded down" to below $1, making all the difference.

Also on Friday, the Reserve added "in liquidation" to the names of the Primary Fund and another fallen Reserve offering, Yield Plus. And Reserve updated the tax status of both funds so that "taxable shareholders ... should be able to recognize a loss for U.S. federal income purposes on their shares of each fund." 

Edited by: Neil Anderson, Managing Editor


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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use