FINRA, NYSE Look Into Lehman Short-Sale Reporting

Law360, New York (April 8, 2008, 12:00 AM EDT) -- The news that Lehman Brothers Holding Co. misreported data on certain short sales has prompted two regulators of the U.S. securities industry to launch an investigation into the bank's short-sale practices.

NYSE Regulation Inc., the regulatory arm of the New York Stock Exchange, said on Friday that Lehman Brothers had inaccurately reported the data for short sales of its 7.95% preferred stock.

The investment bank initially reported that 557.2 million shares of the stock had been shorted over the period ended on March 31. But NYSE...
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