A second liquidating fund from the Reserve just started shelling out cash to shareholders, and this one has maintained a $1 NAV. On Thursday the New York City-based money market fund pioneers revealed that the initial $4.5 billion distribution from their U.S. Government Fund has begun, after which about $6 billion will remain in the fund to liquidate at a later date.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

The move follows the initial $26 billion distribution at the end of October (see MFWire, October 31, 2008) from the infamous Primary Fund that broke the buck in September (see MFWire, September 17, 2008). Shortly thereafter, the Reserve unveiled plans to scrap both the Primary and the Government funds (see MFWire, September 30, 2008, and October 2, 2008).

To get another perspective on the ongoing saga of Reserve chairman Bruce Bent and his team, check out a Friday piece by Bloomberg's Christopher Condon, which follows in the footsteps of similar articles by USA Today and the New York Times. And turn back to the MFWire from October 31, 2008 to see how Reserve fund shareholders are reacting to the turmoil. 

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