Reserve Will Have a Supervisor as it Pays its Legal Bills
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Tuesday, January 06, 2009

Reserve Will Have a Supervisor as it Pays its Legal Bills

A supervisor will be appointed to look at how Reserve Management Co. pays legal and other expenses, The Wall Street Journal's Diya Gullapalli reports in Tuesday's Fund Track column. A U.S. District Court judge issued the ruling Monday requiring that a special master be tapped to prevent "improper expenditure of assets."

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

The Reserve is a battling a slew of suits after its Primary Fund broke the buck in September.

In December, Reserve said it would use investor money to help defend itself in the suits. A unit of Ameriprise Financial then filed a preliminary injunction to prevent the firm from temporarily making those payments. The court order issued Monday denied the injunction but required the appointment of an overseer. The two parties can name their pick for the job by next week, according to the report.

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