Bloomberg Businessweek writes "U.S. Role in Lehman Collapse Allowed in Reserve Trial". It says, "The U.S. government's role in the collapse of Lehman Brothers Holdings Inc. will be allowed as evidence in the Oct. 9 trial over allegations that Reserve Primary Fund misled investors in 2008, a federal judge in Manhattan ruled. The company will be permitted to present evidence that its confidence in Lehman's finances were based in part on the U.S. Securities Exchange Commission's oversight of the investment bank under a voluntary regulatory program, according to the decision by U.S. District Judge Paul Gardephe. A trial is scheduled to begin Oct. 9 in the SEC's case alleging that the company misled investors about the safety of the fund after it suffered losses in Lehman investments. The fund, which held $785 million in debt issued by Lehman, became the first money fund in 14 years to expose investors to losses when Lehman filed for bankruptcy protection in September 2008.... The case is SEC v. Reserve Management Co. Inc. 09-cv- 04346, Southern District of New York (Manhattan)."

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