A federal judge in Minneapolis has approved Ameriprise Financial Incorporated's request to appoint an independent expert to monitor how the owners of the Reserve Primary Fund spend the fund's assets. Allowable expenses will be limited to fees "arising out of the liquidation of the Reserve Fund," the judge ruled. Hurt by losses on debt securities issued by bankrupt Lehman Brothers Inc. on Sept. 16, the Reserve Primary fund became only the second money market fund to drop below $1 per share. Ameriprise, which had placed clients in the Reserve Primary Fund, sued Reserve, claiming it warned some large investors the day before, allowing them time to withdraw their money. Reserve Management, parent of the fund, has said the U.S. Securities and Exchange Commission likely will charge it and Chairman Bruce Bent with violating securities laws in the collapse of the $63 billion fund. The court has asked that Ameriprise and Reserve each recommend a candidate for the special master role by Monday. BLOOMBERG NEWS
Locks' cargo tonnage down by one-third Nearly a third fewer tons of cargo went through locks on the Upper Mississippi last year than in 2007. And 2007 was well down from the peak of about 10 years before. The Army Corps of Engineers said commercial and recreational trips through the locks also fell. The corps didn't give a reason for the drop, but experts say much more corn is being used locally to make ethanol, so much less is shipped down the river. High fuel prices cut into recreational boating.
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