Reuters writes "SEC may press suit over Reserve money fund failure". It says, "A Manhattan federal judge on Wednesday refused to dismiss a U.S. Securities and Exchange Commission lawsuit accusing Reserve Management Co and co-founder Bruce Bent Sr of fraud over the largest ever collapse of a U.S. money market mutual fund.... In his 28-page ruling, Gardephe said the SEC sufficiently alleged that the defendants had motive and opportunity to commit fraud, citing their 'significant holdings' and their 'enormous reputational stake' in the fund. The judge also said the regulator sufficiently alleged the defendants made misstatements or omissions concerning the rate of redemptions, the net asset value, and the availability of a credit agreement to support the $1 net asset value." But "Gardephe declined to let the SEC use some statements on how to value Lehman paper to support its fraud claims, in part because of the 'chaos and uncertainty' after the bankruptcy. Bruce Bent Sr. has said the bankruptcy 'created an unforeseeable and out-of-control condition for many parties.'" See the Memorandum Opinion and Order for "Securities & Exchange Commission v. Reserve Management Company, Inc.".

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September