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Empresas y finanzas

Reserve Management says may face SEC charges


    (Reuters) - U.S. securities watchdogs intend to recommend New York-based Reserve Management Inc and a number of its executives be charged for violating securities laws, the company said on its website.

    The enforcement division of the U.S. Securities and Exchange Commission (SEC) had told it on December 18 it intends to recommend charges against the company, its President Bruce Bent and a number of other officials, the company said.

    Charges were also recommended against Bruce Bent II, senior vice president and Arthur Bent III, chief operating officer and treasurer, it said.

    Reserve Management and the three executives expect to defend themselves vigorously against the allegations, the company said.

    Bruce Bent created the first money market mutual fund in 1970 with a partner and his Reserve Management company ran the Primary Fund, one of the oldest and biggest money-market funds, whose shares fell below the $1 level due to losses on debt issued by Lehman Brothers Holdings Inc .

    That episode prompted the U.S. Treasury to launch a guarantee program to prevent a massive outflow from money market funds.

    (Reporting by Eric Yep in Bangalore; Editing by David Holmes)