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Tuesday, September 16, 2008

Large Money Market Fund Freezes Redemptions

by Calculated Risk on 9/16/2008 05:35:00 PM

From MarketWatch: Money market giant freezes redemptions

One of the ... largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Primary Fund [from The Reserve] ... $62 billion fund ... the value of the fund's share is 97 cents.
This is because of investment in Lehman bonds. I suspect this will be more common if AIG fails.