Goldman Scrutinized for Bear's Fall

Goldman Sachs Group has come under suspicion for putting pressure on their firms’ stocks. Alan Schwartz, who headed Bear Stearns when it collapsed in March, has asked whether Goldman CEO Lloyd Blankfein, whether it was try that traders for Goldman in London manipulated Bear’s struggling stock, according to The Wall Street Journal.

Lehman Brothers Holdings CEO Richard Fuld Jr. also contact Blankfein concerning Goldman traders allegedly involved in spreading negative rumors. Fuld has been contacting traders he suspected of negatively spreading rumors about his stock, according to the WSJ.

Blankfein says that he had no knowledge of any alleged manipulation. Spokesperson Lucas van Praag denies any wrongdoing and told WSJ, “We went out of our way to be supportive of Bear and were rigorous about conducting business as usual.”

The Securities and Exchange Commission is currently investigating insider trading or market manipulation in Bear Stearn’s stock, options, or other securities. The SEC is taking steps to rid of manipulative trading.