Tuesday, January 13, 2009

Reserve Management Co charged with fraud

Massachusetts Secretary of State William Galvin filed a fraud case against Reserve Management Co. The company was making allegedly making false statements about its plans to support the Reserve Primary Fund's net-asset value around the time it "broke the buck" in September. The net asset value of fell below $1 to $.97 following the bankruptcy of Lehman Brothers. The $62 billion Primary Fund collapsed. For more information, read the article at the Wall Street Journal or Business Week.

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