Tags: US | Fallen | Money | Fund

Failed Money Fund to Return $3.4 Billion to Investors

Wednesday, 27 Jan 2010 11:51 AM

A money-market mutual fund that held more than $60 billion before it collapsed will return nearly all the remaining cash it has to investors.

New York-based Reserve Management said Tuesday night it will return $3.4 billion to Reserve Primary Fund shareholders. It's the sixth of the partial payouts the fund has made since its September 2008 collapse.

After the latest distribution, Reserve Management says 99 percent of what the fund held at the peak of the financial crisis will have been returned. About $160 million remains in the fund to cover legal and management costs.

After the Lehman Brothers bankruptcy, Reserve Primary's assets fell below the level needed to ensure investors could get back a dollar for each dollar they put in. That triggered fears about the more than $3 trillion in money funds.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Headline
A money-market mutual fund that held more than $60 billion before it collapsed will return nearly all the remaining cash it has to investors.New York-based Reserve Management said Tuesday night it will return $3.4 billion to Reserve Primary Fund shareholders. It's the sixth...
US,Fallen,Money,Fund
134
2010-51-27
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved