SEC Issues Subpoenas to Hedge Funds for Short Selling Abuses
October 6, 2008
The SEC issued subpoenas to more than two dozen hedge funds to determine whether they manipulated share prices of major financial institutions. In investigating abusive short selling, the SEC is focusing on trading data for a three-week period for some of the goliath financial institutions that recently suffered tumultuous downfalls, such as American Insurance Group, Lehman Brothers and Merrill Lynch.
This investigation follows closely upon the heels of subpoenas that were issued this summer to over 50 hedge fund advisors in determining whether short selling manipulated share prices for Bear Stearns and Lehman Brothers.
http://www.law360.com/articles/70504
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