Settlement Talks Between SEC, RPF Managers Break Down

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...
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