The Securities and Exchange Commission is seeking trading and communications data related to short-selling and options trading in Bear Stearns or Lehman Brothers Holdings, according to The Wall Street Journal.
The SEC sent out more than 50 subpoenas, as recently as July 14. The investigation is set to determine whether the advisers in question spread false rumors to manipulate shares of the two Wall Street firms.
Among the firms that have received subpoenas are Citadel Investment Group in Chicago and SAC Capital Advisors in Stamford, Connecticut. The investigation is looking into trading in securities of the brokers and correspondence between the hedge funds and other parties.
Examiners are focusing on enforcing broker-dealer and investment adviser compliance controls. Along with the SEC, the Office of Compliance Inspections and Examinations, the Financial Industry Regulatory Authority, and New York Stock Exchange Regulation are also taking measures to keep false rumors in check.