A money-market mutual fund that held more than $60 billion before it collapsed will return nearly all the remaining cash it has to investors.
New York-based Reserve Management said Tuesday night it will return $3.4 billion to Reserve Primary Fund shareholders. It's the sixth of the partial payouts the fund has made since its September 2008 collapse.
After the latest distribution, Reserve Management says 99 percent of what the fund held at the peak of the financial crisis will have been returned. About $160 million remains in the fund to cover legal and management costs.
After the Lehman Brothers bankruptcy, Reserve Primary's assets fell below the level needed to ensure investors could get back a dollar for each dollar they put in. That triggered fears about the more than $3 trillion in money funds.
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