Fundsters may not be surprised by the latest mutual fund news coming out of Schwab [see profile]. On Wednesday the San Francisco-based brokerage giant filed to liquidate the now-infamous Schwab YieldPlus Fund, as well as the Tax-Free YieldPlus and the California Tax-Free YieldPlus funds, on August 22 or shortly thereafter [see filing].

Ryan Leggio reported on the news in Morningstar's Fund Times column.

YieldPlus holds $138.1 million, Tax-Free YieldPlus holds $17.9 million and California Tax-Free YieldPlus holds $47.4 million. Morningstar gives all three funds one star.

Thanks to its investments in various asset-backed and mortgage-backed securities, the once-popular YieldPlus fund fell from grace in 2007. Since then, Schwab has shelled out hundreds of millions of dollars in settlements with various regulators and fund shareholders. 

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