On Sept. 16, the $64 billion money market fund was exposed to $785 million in losses due to its holdings in Lehman Brothers debt, rendered worthless upon its bankruptcy the day before. While the value of the fund’s assets fell to 97 cents on the dollar as a result, investors are expected to get back 99 cents, according to calculations by the
SEC Chairman Mary Schapiro applauded the judge’s decision, saying, “We are pleased with the court’s order.”
The judge also decided that the investors who received the full amount of their shares just ahead of the announcement of the Lehman bankruptcy at 8 a.m. Sept. 15 would not be obliged to pay back any money under a “claw back” clause.