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Wachovia to buy Lehman debt from Evergreen unit

Bloomberg News / October 1, 2008
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Wachovia Corp., the US bank that sold its consumer business to Citigroup Inc., said it would buy debt issued by bankrupt Lehman Brothers Holdings Inc. from three money market funds run by Wachovia's Evergreen Investments unit.

The bank will buy $494 million from Evergreen Money Market, Institutional Money Market, and Prime Cash Management, the company said in a statement yesterday. The purchase is expected to be completed by today.

The Charlotte, N.C.-based bank said yesterday it is "in a strong position" to support Evergreen and other divisions. Boston-based Evergreen also said yesterday it had signed on to the US Treasury's emergency insurance program guaranteeing money market investors against losses.

The investment industry has been stung by money market fund losses since the $62 billion Reserve Primary fund became the first in 14 years to fall below the $1-a-share price on Sept 16.

© Copyright 2008 Globe Newspaper Company.
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