SEC subpoenas hedge funds in stock manipulation probe

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The U.S. Securities and Exchange Commission sent subpoenas to more than 50 banks and hedge funds this week, requesting emails and trading records in a probe to uncover suspected manipulation of the shares of Bear Stearns and Lehman Brothers.

The probe followed an article by Bryan Burrough in Vanity Fair in which he cited a “tidal wave of rumor and speculation” as being largely responsible for Bear Stearns’ downfall.

Jamie Dimon, CEO of JPMorgan, which acquired Bear Stearns, last week told television interviewer Charlie Rose that significant jail time should apply to anyone who “knowingly starts a rumor