SEC Probes Hedge Funds Over Rumors: Report

Law360, New York (July 15, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has reportedly subpoenaed more than 50 hedge fund advisers in its probe of whether the share prices of Bear Stearns Cos. and Lehman Brothers Holdings Inc. were manipulated.

The Wall Street Journal reported on Tuesday that the SEC issued the subpoenas as part of its investigation into whether hedge fund advisers spread rumors in order to manipulate the stock of the two banks.

The subpoenas demand access to trading data and communication documents related to the short sales and options...
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