Apparently Goldman Sachs is cooperating and as Brad Hintz said yesterday, shouldn’t be worried about a thing.
subpoenas
Also, Chaz thinks all of this has gone too far, and just because something “smells bad” doesn’t mean it’s illegal.
Reuters reports that federal authorities have “expanded” their insider trading investigation, having sent subpoena’s to “several large hedge funds” last week. Oddly, the government failed to leak the names of the firms to the press (a rookie mistake for which someone will fired), but that’s cool, we’ll just take a few stabs.
From MarketWatch: SAC Capital Advisors LP told investors in a letter that it got a government subpoena, according to a person who received the update from the hedge fund. Continue reading »
The Financial Crisis Inquiry Commission slapped Goldman Sachs with a subpoena for documents and emails the bank has failed to turn over “in a timely manner,” according to a press release from the Commission.
Not surprisingly, the news has hit Goldman shares, which were up at the start of the trading day. Continue reading »
Dick Fuld plans to testify that not only did the infamous “Repo 105″ transactions play no part in Lehman’s bankruptcy, but they were so immaterial that he never knew about the accounting treatment until the bankruptcy examiner unearthed them.
In his prepared testimony, a copy of which was obtained by Deal Journal, he said the press has “unfairly vilified” Lehman by claiming the Repo 105 transactions were meant to hide the firm’s toxic assets. Instead the accounting gimmick, which Fuld says was totally legal, involved highly-liquid investment grade securities, mostly Treasury bonds.
Meanwhile, several hedge funds that supposedly shorted Lehman shares before the bankruptcy have been subpoenaed by investigators. They include SAC Capital, Och-Ziff Capital Management, Greenlight Capital and Citadel Investment Group.
Full Text of Fuld’s Statement: (Courtesy of Deal Journal)
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