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Published on Gold Anti-Trust Action Committee (http://www.gata.org)

Lehman bankruptcy breaks the buck at money-market fund

By cpowell
Created 2008-09-17 00:16

Reserve Primary Money Fund Falls Below $1 a Share

By Christopher Condon
Bloomberg News
Tuesday, September 16, 2008

BOSTON -- Reserve Primary Fund became the first money-market fund in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc.

The fund, whose assets plunged more than 60 percent to $23 billion in the past two days, said the Lehman losses forced the net value of its assets below $1 a share, known as breaking the buck. Reserve Primary, the oldest money fund in the nation, fell to 97 cents a share and redemptions were suspended for as long as seven days. ...

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For the full story:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aycQDd9pEdCA&refer=h... [1]

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Source URL:
http://www.gata.org/node/6615