Reserve Primary Fund

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The Reserve Primary Fund was a large money market mutual fund.

On September 16, 2008, during the Global financial crisis of September–October, 2008, it lowered its share price below $1 ("breaking the buck") because of exposure to Lehman Brothers debt securities. This resulted in demands from investors to return their funds as the financial crisis mounted.[1] Normally, the net asset value of money market funds is kept at $1.

Reserve Management had multiple other funds frozen because of this failure. It has liquidated a few funds, and post periodic updates about plans to liquidate other funds on its website.

As of October 27, 2009, more than $3.5 billion sat in the Primary fund, most in a special reserve held aside to be used for costs and expenses, including legal fees.[2] In November 2009, a U.S. district judge ordered the fund to make pro-rata distribution of almost all remaining assets to shareholders.[3] As of December 2014, the fund had paid out 99.1 cents per share.[4]


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