Much has been said on Zero Hedge about Paul Kanjorski and his interpretation of what happened to money market funds on September 18. Now the Investment Company Institute chimes in with their own view. While the entire report is a massive 220+ pages, the relevant section (S. 6) for Money Market flows begins on page 47. Must read for anyone who wants a semi-independent perspective on what was really happening in those fateful post Lehman days. The following section is just a portion of the disclosures that ICI has unearthed:
Four days after Lehman declared bankruptcy, Primary Fund filed with the Securities and Exchange Commission (SEC) an application for an order to suspend redemptions and to postpone the payment of redemption proceeds for more than seven days. By the time it filed its application, the fund had reportedly received redemption requests for approximately $60 billion. On September 22, the SEC granted the order, effective as of September 17.
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