Settlement Talks Between SEC, RPF Managers Break Down
By Jeff Sistrunk
Law360, Los Angeles (September 13, 2013, 10:12 PM EDT) -- The U.S. Securities and Exchange Commission's settlement negotiations with the former managers of the Reserve Primary Fund -- which gained notoriety when it "broke the buck" in 2008 after its investment in Lehman Brothers Holdings Inc. backfired -- have broken down, according to court documents made public Friday.
Attorneys for the money fund and its former managers, Bruce Bent Sr. and his son, Bruce Bent II, said in a letter to U.S. District Judge Paul Gardephe that they had reached a settlement agreement in principle in late August. But the SEC...