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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (32140)	9/25/2008 12:35:08 AM
From: Madharry	Read Replies (1) \| Respond to of 78751

email #1 from ameritrade: Thank you for the email. We apologize for the incorrect and unhelpful customer service. I will attempt to answer all of your questions. I am answering specific questions for the account ending in 1635. Two issues need to be addressed. First, on September 17th, the Reserve money market funds "broke a dollar." This means that one share in the money market was no longer worth one dollar. When this happened TD AMERITRADE liquidated client holdings in the Reserve money markets and withdraw all client assets. When this was done, one share was worth approximately .97 cents. Due to the enormous amount of withdraws from the fund the Reserve was not able to redeem shares immediately as was normal. The Reserve has said that redemptions will be made within seven business day, from the 17th, but this date is not ensured, nor is the redemption amount. This means that we do not yet know what the redemption rate will be, nor do we know when the settlement date is. This is an unfortunate situation for everyone involved, but TD AMERITRADE acted with our clients best interests in mind and sought to limit further losses in the Reserve money markets. We are awaiting further notification form the Reserve funds regarding settlement date and redemption rate. You had two reserve funds on your account. One is RUTXX and the other now has a "contra CUSIP." The first had 206.41 and the second had 4,760.33. These funds are not available at this time, and no new investments are being allowed into the funds. Going forward, your account has been assigned a new money market account which is a Money Market Deposit Account that is held at a bank and the Reserve. This money market will be your sweep vehicle until further notice. Secondly, I am assuming you are referring to your sell orders on Genworth, both of which were entered on 9/19/08. These trades are set to settle on 9/24/08. Now, the reason the funds were not immediately available to reinvest is because the buy side on Genworth, entered in on 9/18/08, had not yet settled. It settled on 9/23/08. As the buy side has not fully settled the funds or proceeds are available to reinvest. Now that buy side has settled, you are able to reinvest or withdraw the proceeds from the sale. Put simply, nobody with a cash account can reinvest the proceeds from the sale of a stock, or withdraw them, until the buy side on the particular stock has settled. This is the Federal Reserve settlement period rule which dates back to 1934. This rule is not negotiable and is applied to every buy or sell order that is executed. I hope this helps and answers your questions. Please feel free to contact us if you need clarification or have additional questions or concerns, have a great day. email #2 from ameritrade: Thank you for your email. I sincerely apologize if any information you received earlier was confusing or misleading. Upon review of your account ending in 1635, I do show that you have fund in the Reserve Funds US Treasury Funds Class R. This fund still stands at $1.00. You also have $206.41 in RUTXX: RESERVE FUND US TREASURY FUND which still maintains an NAV of $1.00. However, to redeem this, you can enter an order, but please be advised that we are not able to guarantee an execution with the current conditions. THE SAGA CONTINUES- in my email response i have asked them to formally request redemption of these funds and to provide to me written proof that they have done so. This is the first time they have ever told me that I need to request redemption of a money market account so there may be more to follow;