The Reserve Primary Fund recently distributed an additional $3.4 billion to investors. The Wall Street Journal reports that investors have now recovered 98 cents on the dollar since the money market fund “broke the buck” on September 16, 2008 following the collapse of Lehman Bros. The SEC will continue to seek more assets from the fund.
According to the Wall Street Journal, some investors who invested through omnibus accounts were allowed to keep previous $1-per-share payouts. U.S. District Court Judge Paul Gardephe ruled that the process of identifying the underlying individual accounts within the pooled accounts to offset those payments would be cost-prohibitive.
The WSJ reports that the latest payout leaves only about $160 million remaining in the fund, excluding its Lehman Brothers shares, which are now carried at zero.
Read the Wall Street Journal article
