Fallen money-market fund makes $1B distribution
Legal News Center
A money-market mutual fund that held more than $60 billion before it notoriously "broke the buck" a year ago said Wednesday it will hand out $1 billion in a fifth distribution to investors from the fund's remaining assets.
The $1 billion distribution, the smallest of five partial payouts since the Reserve Primary Fund's collapse, will be made to shareholders on or about Oct. 2, said New York-based Reserve Management Co., which ran the fund.
After that payout, the fund will hold about $3.5 billion. The final distribution and its timing is tied up in a pending civil fraud case brought by the Securities and Exchange Commission against Reserve Management and its two top executives.
At a hearing in New York on Wednesday, U.S. District Court Judge Paul Gardephe said he was inclined to set a Dec. 23 deadline by which the bulk of the remaining assets should be distributed to the fund's thousands of shareholders.
The fund had held more than $64 billion shortly before Sept. 16, 2008, when its net asset value fell below the $1 level needed to ensure investors a dollar-for-dollar return of their principal put into the fund. The fund declared $785 million that it held in Lehman Brothers debt worthless after the investment bank's bankruptcy filing. That sank the fund's net asset value to 97 cents, leading to the fund's collapse as institutional investors demanded cash back and fund managers were forced to sell assets at steep discounts amid plunging markets.
Related listings
-
Calif. courts shuttered Wednesday to save money
Legal News Center 09/17/2009The doors are closed at the California Supreme Court, the tiny courthouse in Alpine County and every state courthouse in between in an unprecedented attempt to close a historic budget deficit.The Judicial Council, which oversees California's courts, ...
-
Supreme Court could loosen cap on corporate political spending
Legal News Center 09/14/2009The Supreme Court's conservative bloc sounded poised Wednesday to strike down on free-speech grounds a 102-year-old ban against corporations spending large amounts of money to elect or defeat congressional and presidential candidates. If the justices...
-
Appeals court upholds Kan. pharmacist's conviction
Legal News Center 09/10/2009An appeals court panel upheld on Wednesday the conviction of a pharmacist for conspiracy to unlawfully distribute prescription drugs through a Wichita-based Internet pharmacy.But the panel from the 10th U.S. Circuit Court of Appeals in Denver also th...
Victorville CA DUI defense Attorneys
The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.
Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .