Feature

Spotlight

Bruce Bent

Bruce Bent didn’t just invent the money-market fund, he was the industry’s major proponent of caution, said Steve Stecklow and Diya Gullapalli in The Wall Street Journal. The 71-year-old CEO of Reserve Management “preached a principle of extremely cautious investing,” buying only ultra-safe Treasury securities and bank CDs, and shunning the higher-yielding commercial paper, or short-term corporate IOUs, favored by other funds.

So investors were shocked when Bent’s biggest fund, Reserve Primary, announced that it couldn’t maintain its per-share price of $1, a big no-no for a money fund. The reason: It held $785 million in commercial paper issued by bankrupt Lehman Brothers. “He kept ranting about the rest of the industry’s bad behavior while he was the one who let his guard down,” says Don Phillips of rating firm Morningstar. Bent and Reserve Management now face dozens of lawsuits.

Recommended

Jamal Khashoggi's Saudi killers got paramilitary training in U.S.
Jamal Khashoggi
Jamal Khashoggi Murder

Jamal Khashoggi's Saudi killers got paramilitary training in U.S.

10 things you need to know today: June 22, 2021
Ebrahim Raisi
Daily briefing

10 things you need to know today: June 22, 2021

Philippines' Duterte warns he'll jail people who refuse the COVID-19 vaccine
Philippines President Rodrigo Duterte on a visit to China.
that's one idea

Philippines' Duterte warns he'll jail people who refuse the COVID-19 vaccine

Iran's president-elect says he won't meet with Biden
Ebrahim Raisi.
all eyes on iran

Iran's president-elect says he won't meet with Biden

Most Popular

7 toons about the Dems' Joe Manchin problem
Political Cartoon.
Feature

7 toons about the Dems' Joe Manchin problem

Bernie Sanders wants to know if cannabis reporter is 'stoned' right now
Bernie Sanders.
Sounds dope

Bernie Sanders wants to know if cannabis reporter is 'stoned' right now

Covering for Trump?
Merrick Garland and Donald Trump.
Picture of Ryan CooperRyan Cooper

Covering for Trump?