Reserve Primary Fund

The Reserve Primary Fund was a money market mutual fund, which pools investors’ money to invest mainly in short-term, low-risk securities like government bonds. During the 2008 financial crisis, it faced a rare loss when some holdings, including a large amount of Lehman Brothers debt, lost value. This caused the fund to "break the buck," meaning its value fell below the $1 per share typical of money market funds. The incident highlighted risks in money market funds and led to increased regulation to improve stability and protect investors.