On Thursday, Bloomberg wrote "Union Bank of California Sues CBS for Return of $72.3 Million", which says, "Union Bank of California sued the television network CBS Corp. for the return of $72.3 million withdrawn from Reserve Primary, the first money-market fund to drop below $1 a share in 14 years. The bank, based in San Francisco, claims it sent the money to CBS on Sept. 15, after the broadcaster requested a withdrawal from Reserve Primary. The fund confirmed the redemption request and didn't distribute the cash to Union Bank, according to the suit, filed on Sept. 29 in the U.S. District Court's Southern District of New York." This appears to be a case of a money fund "portal" paying out a distribution before it had received the redemption cash from an underlying money fund. We believe there are more cases of this and that many "portals" have since changed their policies to pay out only after funds have been received.
