Reserve’s Bent Tells of ‘Throwing’ Things at Wall

Firm considered a reverse repurchase transaction in wake of Lehman's failure, Bent testifies.

Bruce R. Bent, chairman and cofounder of the Reserve Funds, said he and others were willing to “try anything” the day after Lehman Brothers Holdings Inc.’s bankruptcy caused a run on the $62.5 billion money-market fund.

Bent testified on the second day of a trial in the U.S. Securities and Exchange Commission’s case claiming he and his son Bruce Bent II defrauded investors by misleading them about the fund’s safety in the two days following Lehman’s failure.

Opening Statement

In her opening statement, Brown told jurors that the Bents lied on the morning after Lehman announced its bankruptcy, falsely telling investors, regulators and the fund’s trustees that they would use money from their firm, Reserve Management Co., to support the $1 net asset value.

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