Friday, September 19, 2008

Forget A Seven Day Halt; Reserve Seeks to Halt Fund Redemptions Period; Has $60 Billion In Withdrawal Requests!!

The Reserve said it has filed, on behalf of the Primary Fund and the U.S. Government Fund, an application with the U.S. Securities and Exchange Commission (SEC) seeking an order to be allowed to suspend investor withdrawals or delay redemptions.

"The funds' investment adviser is unable to dispose of securities to fund redemptions without impairing the net asset value of each fund," the company said in a statement.

The Primary Fund has received redemption requests of about $60 billion this week, the company said. And investors have wanted to pull out about $6 billion from the $10 billion U.S. Government Fund, it added.

-Robert Wenzel

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