WSJ writes "Feuding Over Fund Collapse Drags On". It says, "U.S. securities regulators last November suffered a major setback in their civil trial against money-market mutual-fund inventor Bruce Bent Sr. and his son, but the two sides are still going at each other. Despite failing to prove fraud charges, the Securities and Exchange Commission is taking the unusual step of seeking $130 million in penalties from the Bents' former asset-management firm, whose flagship Reserve Primary Fund "broke the buck" in 2008 and ignited a crisis in the money-fund industry. The agency also is asking for a new jury trial to hear the fraud charges again, according to court documents. That isn't all. The SEC wants Mr. Bent's son, Bruce Bent II, 46 years old, to pay $1.3 million as punishment for the jury's finding that he was liable for negligence." See also yesterday's WSJ on "shadow banking" ("Too Big to Fail Casts Long Shadow").

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