On September 22, 2008, the SEC granted an application by The Reserve Funds on behalf of two if its funds, the Primary Fund and the US Government Fund to suspend redemption rights. Pursuant to this Order, the funds are allowed to suspend the rights of redemption, and to postpone payment for shares submitted for redemption for which payment has not been made, "until the markets are liquid to a degree that enables each fund to liquidate portfolio securities without impairing the net asset value of each fund," or until the Order is rescinded by the SEC.
According to The Reserve, as of September 16th, the Primary Fund had face value holdings of debt issued by Lehman Brothers Holdings, Inc. totaling $785 Million. At that time, due to Lehman's bankruptcy, those securities were revalued to a zero value, resulting in the net asset value of the Primary Fund being at $0.97. in other words, the money market fund broke the buck.