AAA-rated Reserve Primary Money Fund, managed by Reserve Management Corp. in New York, held over $780 million in Lehman Brothers debt, spearheading the fund’s two-day 60% plunge to a value of $23 billion.
The only other money market fund to break the buck was Community Bankers Mutual Fund in Denver, which failed due to derivatives in 1994.
Reserve Primary, which had assets valued at over $64 billion as recently as May 31, halted redemptions as of 3 p.m. Tuesday, September 16, 2008.
For more on Money Markets and “Breaking the Buck,” see the FDIC website:
http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html
For the details on Reserve Primary
http://www.bloomberg.com/apps/news?pid=20601087&sid=aycQDd9pEdCA&refer=home
http://money.cnn.com/news/newsfeeds/articles/djf500/200809161914DOWJONESDJONLINE000750_FORTUNE5.htm