Investors who tried to pull out of the Reserve Primary Fund
before it broke the buck won't get more money than those who stayed put. Bloomberg
's Christopher Condon reports
that U.S. District Judge Paul Gardephe ordered nearly all of the fallen money market fund's remaining assets to be distributed pro rata to all investors, with no preference given to the early liquidators.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
According to Bloomberg, Gardephe's move will leave Primary's shareholders with 98.75 of the money they had in the fund on September 16, 2008. (In October, the Reserve started its fifth distribution round to Primary shareholders, bringing their recovery rate up to 92 percent so far.)
Early liquidators from Primary included Deutsche Bank and E*Trade. Ameriprise, meanwhile, did not liquidate its Primary fund holdings (or those of its clients), and the brokerage sued Reserve after Primary collapsed, claiming that Reserve tipped off other institutional investors before the fund officially broke the buck.
Neil Anderson, Managing Editor
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