Bloomberg writes "Judge Orders Pro Rata Distribution of Reserve Primary", saying, "Reserve Primary investors waiting for cash from the money-market mutual fund whose September 2008 crash helped freeze global credit markets must share equally in its losses, a federal judge said. U.S. District Judge Paul Gardephe in New York today agreed with the Securities and Exchange Commission and ordered a pro rata distribution of almost all the fund's remaining assets. All shareholders can expect to recover at least 98.75 percent of money held in the fund when it closed on Sept. 16, 2008." Bloomberg adds, "The decision marks the first major step by a court to clean up the mess left for investors caught in the largest money-fund failure in the industry's 40-year history." See also, Reuters' "Fed told rule change could help with exit: source", which says, "A handful of banks have told the Federal Reserve they could do more to support the central bank's exit from its emergency cash infusions if a key accounting rule was changed.... At issue are reverse repurchase agreements, a cash-draining tool, that the banks said could be used to a greater extent when the time comes if dealers did not have to record them on their balance sheets when they act as middle-men." Finally, see ICI's weekly "Money Market Mutual Fund Assets", which says, "assets decreased by $7.82 billion to $3.330 trillion" through Tuesday, Nov. 24."
