Clients of troubled money-market funds get help
7:30 AM
Posted: Thursday, September 25, 2008
OMAHA (AP) - TD Ameritrade and another brokerage firms told their customers yesterday they will cover up to $83 million of losses in a fallen money market fund.
And clients of a Putnam Investments fund that suddenly closed last week were told their assets will be moved to another firm.
Omaha-based TD Ameritrade says it will cover up to $50 million of losses in the Primary Fund. And Ameriprise Financial says it will commit up to $33 million.
The firms said the amounts represent what they project their brokerage clients could stand to lose.
The brokerages' clients had money invested in the Reserve Primary Fund. Last week, that fund's underlying assets fell below $1 for each investor dollar put in. TD Ameritrade Chief Operating Officer Fred Tomczyk says the company's "strong financial position" allowed it to step in and compensate clients.
Ameriprise Financial says it was taking the action because of the "unprecedented nature of this event."
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