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SEC Investigating Fifty Hedge Fund Advisers

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The rumor monger witch hunt is on. Not only did Chris Cox announce that the Securities and Exchange Commission was, for the first time in its history, bringing actions against those who spread false rumors, the Wall Street Journal is now reporting that the SEC subpoenaed 50 hedge-fund advisers.
The subpoenas supposedly refer specifically to short selling and options trading in shares of Lehman Brothers and Bear Stearns. Coupled with Cox's restrictions on short selling, it looks like the government is looking for scapegoats in this market.
"It's a bit like the high priests doing a rain dance in a drought. It doesn't matter whether it makes sense. They just need to be seen doing something," one market watcher tells DealBreaker.