The trial against Bruce Bent Sr. and his son Bruce Bent II, the managers of the Reserve Primary, began Tuesday in federal court in New York. The $62 billion Reserve Primary fund had invested in the debt of bankrupt Lehman Brothers Holdings Inc., sparking an investor panic in September 2008 and eventually forcing the federal government to move in to protect all money-market funds….
In her opening statement, Nancy Brown, the lead attorney for the SEC, described in detail the panicked hours of Sept. 15, 2008, as investors woke up to the news of Lehman’s bankruptcy and proceeded to pull out $16 billion from the Reserve Primary by early afternoon. Ms. Brown invoked the James Stewart movie more than once as she painted the scene for the jury.
via ‘It’s a Wonderful Life’ Until a Financial Crisis Hits – WSJ Law Blog
