Reserve Primary Fund: Investors May Lose

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When solicited to place money with The Reserve, I was assured of its safety and security. This "money market" account income was never even thought to be risky !

Idaho Identity Withheld of ID 5:44PM January 06, 2009

SEE IF YOU CAN HELP TO GET OUR MONEY BACK

Avi Ziv of NY 3:07PM November 19, 2008

I gave $9,600.00 to my broker at Ferris, Baker and Watts on September 12, 2008; for holding until I could figure out what I wanted my IRA SEP invested in. Ferris, Baker and Watts put it in The Reserve Primary Fund and now they tell me I'm out of luck since the broke the buck and they are not willing to. I called them on September 17, 2008; but they never requested my money or did anything and now they are claiming no liability for my IRA SEP distribution which I entrusted to them. Please comment on this for me.

Jennie of MD 2:24PM September 24, 2008

Jason,
Were did you hear the Reserve was making all accounts whole?

Mark of OH 6:16PM September 22, 2008

Wow, I thought U.S. News and World Report readers knew what they were talking about.
Also, Reserve has already said they are making all accounts whole.

Jason Alexander of MN 5:45PM September 22, 2008

reserve is a private company, if bruce bent empties his pockets, which is unlikely, then you will be whole. you are out of luck, as am i.

of 1:40PM September 22, 2008

i executed a redemption on wed. for 2 CDs and then they closed and locked the fund for AT LEAST 7 days. Who is gonna pay for my CDs?? I already inqired about a legal action!!

zev of FL 6:15PM September 21, 2008

Anyone have any idea what the chances of the Reserve Primary Fund taking action to put everyone back at $1 in the near future.

Robert of CA 2:54PM September 18, 2008

I was lead to believe by unending recomendations that MMDA's were as safe, (and by many accounts, safer than), FDIC! So, I hope that the Reserve Fund = Primary Fund is a good steward and makes each account holder whole. Thank you.

Rodger Marshall of WV 10:55PM September 17, 2008

There were a couple of inflection points that led us to this point. Remove either of them and a lot of this problem goes away. One was when Investment Banks began buying the collateral themselves to populate "trusts" that they then sold to the public in increasingly complex structures instead of issuing in behalf of a real business entity. The next step was finding someone greedy enough to buy the residual (the equity piece)of the structure which, in effect, took the IB out of the loop, paid their origination fees and freed their capital to replicate these deals ad infinitum. They became their own Treasury printing press as long as there was collateral to be purchased. Retaining no equity interest relived them of any feeling of responsibility so they didn't care where the collateral came from or even if it was creditworthy. My recommendation would to prohibit IB's from being issuer & originator,requiring originators to retain a larger residual and from selling or in any way leveraging their residual piece. The other would be to require creation of an exchange through which all derivatives must clear and disallow off-ballance-sheet accounting going forward. Fail to do any of those things and you have but scotched the snake, not killed it.

Charles of TX 3:05PM September 17, 2008