Friday, 22 August 2014
Last updated 13 hours ago
Jul 29 2008 | 9:15am ET
Rumors about SAC Capital Advisors are at the center of the Securities and Exchange Commission’s probe into potential market manipulation of Lehman Brothers Holdings stock.
In its investigation of rumor-mongering on Wall Street, the regulator is focusing on four in particular. In addition to SAC, they are the Federal Reserve’s lending facility, Barclays and PIMCO, The Wall Street Journal reports. The rumors indicated that concern about Lehman’s financial well-being had led customers such as SAC to take its business elsewhere.
The rumor that SAC and PIMCO were closing their accounts at Lehman pushed the bank’s shares down by as much as 21% on July 10, before both firms denied that they were ending their relationships with Lehman.
The SEC is seeking phone call transcripts, messages and payroll documents that mention the four names suggested in the rumors. The regulator sent dozens of subpoenas in recent weeks as part of its rumor-mongering probe to hedge funds and other firms.
The agency is also looking into hedge funds’ internal compliance systems in an effort to prevent future rumors spreading like the Lehman rumors, or rumors that helped doom Bear Stearns in the weeks prior to its demise.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note