Bruce R. Bent
Bruce R. Bent | |
|---|---|
| Born | Bruce Roger Bent May 25, 1937 |
| Nationality | American |
| Alma mater | St. John's University |
| Occupation(s) | Chairman, Double Rock Corporation |
| Years active | 1970–current |
| Known for | Co-creator Money market funds |
Bruce Roger Bent (born May 25, 1937) is an American businessman credited with inventing the world's first money market fund, the Reserve Fund, with Henry B. R. Brown in 1970. Bent and Brown created an organizational structure by which investors, both large and small, could pool cash to gain access to the institutional market for short-term money market obligations while retaining "on demand" liquidity. Their creation had the unanticipated effect of restructuring the economics of the brokerage industry and the processing of mutual funds in general.
Bent patented another financial revolution with the introduction of Reserve Insured Deposits, which facilitated FDIC coverage on all levels of bank deposits forcing the structuring of bank deposit gathering.
Money market funds now manage more than US$3.0 trillion, serving tens of millions of investors.[1][2]
In the book One Up on Wall Street, published in 1989, Peter Lynch wrote that "there ought to be a monument to Bruce Bent and Henry B.R. Brown" in regards to their role in inventing the money market fund.[3] The American Museum of Financial History, an affiliate of the Smithsonian Institution, also recognized the money market fund's importance and impact on the nation's financial systems.[citation needed]
In 2018, New York Historical Society published, "An Interview with Bruce Bent, Remembering Wall Street, 1950-1980."
Early life and education
[edit]Bent was born and raised in Great Neck, New York. He attended St. Aloysius School and graduated from Great Neck North High School in 1955. From 1951 to 1955, Bent was a clerk in the Manhattan Food Stores. After high school, Bent worked as a mail clerk and carrier at the Great Neck Post Office for six years. He served in the Marines before attending St. John's University. Bent graduated with a bachelor's degree in economics from St. John's in 1961. He also created the world’s first money market system, and sold it for millions of dollars. Later on, he stated he regretted the sale and believed he should have given all of the money to hurricane relief foundations.[4]
Career
[edit]Bent started his Wall Street career in 1961 as an assistant to the managing partner of LF Rothschild and Company Inc. Two years later, he began working at the pension firm, TIAA-CREF, where he met his eventual business partner, Brown. In 1968, the pair created their own investment banking firm, Brown & Bent. In August 1969, while brainstorming about investment vehicles, Bent posed the idea for a mutual fund that could offer rates of return higher than that offered by banks while striving for zero market risk.[5] The idea was to provide immediate liquidity and safety for depositors' money, above all else.
In 1971, the firm launched its first money market fund, the Reserve Fund, to provide effective cash management, a dollar back for every dollar invested, and beyond that, a reasonable rate of return.[6] The fund was launched with no sales force nor advertisements, but instead relied on phoning investment advisers and handing out brochures on the Long Island Rail Road. In January 1973, The New York Times published an article about their firm and by the end of the year it had $100 million in deposits.[5] Brown retired in 1985, but maintained his ownership until 1999 when he was bought out by Bent and his sons, Bruce II and Arthur III. [3]
The Reserve Primary Fund ceased operations on September 17, 2008 as the result of the collapse of Lehman Brothers.[7][8]
The Reserve Primary Fund was succeeded by Reserve Insured Deposits (RID) which provided unlimited FDIC insurance and immediate liquidity while eliminating the operational costs and inefficiencies of their original money market fund. RID had grown to $35 billion when it was sold in 2010. Bent is the named inventor on more than 70 patents for the banking industry.
Politics
[edit]In 2001, Bent was the Republican candidate for Nassau County Executive. Before he was chosen as the Republican candidate, he received the endorsement of the Conservative Party and ran with little assistance from the county's Republican Party. Promising to improve the county's financial situation and work for a salary of $1 a year, he lost to Democratic candidate Tom Suozzi.[4]
Personal life
[edit]Bent has two sons with his wife Nancy.[3] Sons, Bruce and Arthur, ran The Reserve with Bent until its sale in 2010. In 1980, he endowed Bent Hall, a seat of the St. John's University College of Business.[6] Bent served as a trustee and a member of the executive committee of St. John's more more than 20 years. He is also a member of The Founders Society.[9][10] He has also given lectures at St. John's University, New York University where he attended the Graduate School of Business, Long Island University, The Wharton School, and Harvard University.[11]
See also
[edit]- Reserve Primary Fund
- Reserve Insured Deposits
References
[edit]- ^ Stewart, James (September 21, 2009). "Eight Days". The New Yorker.
- ^ Akay, Ozgur; Griffiths, Mark D.; Winters, Drew B. (2015). "Reserve Primary: Fools Rush In Where Wise Men Fear to Tread!". Journal of Investment Management. 13 (1).
- ^ a b c Stecklow, Steve; Gullapalli, Diya (December 8, 2008). "A Money-Fund Manager's Fateful Shift". The Wall Street Journal. Archived from the original on May 2, 2021. Retrieved April 30, 2021.
- ^ a b Cooper, Michael (February 25, 2001). "He's Rich and Has No Fear of Commitment". The New York Times.
- ^ a b Weber, Bruce (August 15, 2008). "Henry B.R. Brown, Who Opened Money Markets to Masses, Dies at 82". The New York Times. Retrieved April 30, 2021.
- ^ a b "Bruce Bent Recognized as Visionary of Mutual Fund Industry". Manhasset Press. November 11, 2011. Archived from the original on December 5, 2012.
- ^ Popper, Nathaniel; Silber-Greenberg, Jessica (November 12, 2012). "Money-Market Pioneer and Son Cleared of Fraud". The New York Times.
- ^ Tymkiw, Catherine (November 12, 2012). "Pioneer of Money Market Funds Cleared of Fraud". CNN Money.
- ^ "Board Emeriti". St. John's University.
- ^ "Bruce Bent Honored For Revolutionizing Investment World" (PDF). St. Johns University Magazine. Winter 2012: 47. Archived from the original (PDF) on 2015-06-18. Retrieved 2017-02-19.
{{cite journal}}: Cite journal requires|journal=(help) - ^ "Bruce R. Bent". Double Rock.