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.

Under questioning by SEC lawyer Nancy Brown, Bent said today his firm was exploring a reverse repurchase transaction to raise cash on Sept. 15, 2008, the day after Lehman filed for bankruptcy protection, in spite of a limitation against borrowing more than 5 percent of the fund's assets.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.