If you like lawyer jokes, today's session at the Bent's fraud trial would have been heaven. There were lawyers testifying, lawyers questioning lawyers, with more lawyers stating objections to what the lawyers were asking each other.

What is expected to be the penultimate day of testimony began with more testimony from Kate Crowley, the former general counsel at the Reserve [profile]. It continued with Rose DiMartino and Joel Goldberg, Willkie Farr attorneys who worked with Reserve as outside counsel during the 2008 financial crisis.

To read the full, continuing saga of the collapse of the Reserve Primary Fund and the ensuing legal battle, see MFWire's living timeline.

In the afternoon, defense counsel focused on DiMartino's actions regarding the "Reserve Insights" piece which was placed on the website detailing a credit support agreement to protect the Reserve Primary Fund. That agreement never came into being.

Though she called Crowley about it, DiMartino never looked at it herself, a point belabored by the defense.

Goldberg, the other Willkie Farr attorney, testified about his advice to the Bents and the Reserve on September 15-16, 2008. He said he discouraged them from saying they would support the fund and protect the NAV unless they were completely sure they could.

"If they disclose it, they have to be committed to it," he said.

The SEC also displayed an e-mail from Goldberg to the SEC and DiMartino about the Primary Fund where he indicated they were going to break the buck and go out of business.

Goldberg said the "going out of business" comment was him guessing at the inevitable end of the situation after the buck had been broken.

The government rebuttal case will conclude tomorrow, and closing arguments are expected to be heard Monday. One juror asked to be dismissed as she had pre-purchased plane tickets to Houston, Texas. The judge said she could be released, but pointed out that it was possible she wouldn't be able to get out of New York anyway with the hurricane approaching. If she does get on a plane, she will be dismissed; if not, she'll return Monday.

Her absence would not affect the trial as there would still be seven jurors remaining, and only six are required for a civil case. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE