Reserve Fund Faced ‘Perfect Storm’

In closing arguments, Bents’ lawyer compares 2008 crisis to Hurricane Sandy.

Reserve Primary Fund, the failed $62.5 billion money-market fund run by Bruce R. Bent and his son Bruce R. Bent II, was faced with an economic storm much like Hurricane Sandy, which swept through the northeastern U.S. last week, a lawyer for the two men told jurors in Manhattan.

The U.S. Securities and Exchange Commission claims the Bents, their investment advisory firm Reserve Management Co. and Resrv Partners Inc. defrauded customers by falsely claiming they would support the fund financially when it faced a run by investors in the wake of the 2008 Lehman Brothers Holdings Inc. bankruptcy.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Advertisement. Closing in 15 seconds.