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THURSDAY, NOVEMBER 26, 2009
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SEC Opens Subprime Probe

Cox announces investigations into CDOs in wake of Bear Sterns tremors

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(Newser) – The feds are investigating the controversial bundles of financial services that have recently shaken the market and sparked a spate of leveraged buyouts, the Journal reports. SEC chief Christopher Cox told a congressional panel yesterday that "about 12 investigations" were under way into CDOs, shared debt packages reliant on faltering subprime mortgages.

Cox also said the commission is looking into last week's liquidity crisis at two Bear Stearns hedge funds that were heavily backed by CDOs. Bear Stearns announced yesterday that it will be cheaper than expected to bail out the funds, which still owe billions to backers.

Securities and Exchange Commission (SEC) Chairman Christopher Cox, center, and his fellow commissioners, from left, Annette Nazareth, Paul Atkins, Roel Campos and Kathleen Casey, listen to opening remarks on Capitol Hill in Washington, Tuesday, June 26, 2007, during a hearing of the House Financial Services Committee. (AP Photo/Susan Walsh)
Securities and Exchange Commission (SEC) Chairman Christopher Cox, center, and his fellow commissioners, from left, Annette Nazareth, Paul Atkins, Roel Campos and Kathleen Casey, listen to opening remarks...   (Associated Press)
Trader Jason Harper, center, rubs his forehead as he works on the floor of the New York Stock Exchange, Friday afternoon, June 22, 2007. Wall Street ended a volatile week with a sharp decline Friday as investors again succumbed to nervousness about rising interest rates and souring subprime loans. The...
Trader Jason Harper, center, rubs his forehead as he works on the floor of the New York Stock Exchange, Friday afternoon, June 22, 2007. Wall Street ended a volatile week with a sharp decline Friday as...   (Associated Press)
Securities and Exchange Commission (SEC) Chairman Christopher Cox answers a question while testifying on Capitol Hill in Washington, Tuesday, June 26, 2007, before a House Financial Services Committee hearing. (AP Photo/Susan Walsh)
Securities and Exchange Commission (SEC) Chairman Christopher Cox answers a question while testifying on Capitol Hill in Washington, Tuesday, June 26, 2007, before a House Financial Services Committee...   (Associated Press)
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ANALYSIS

Demonizing Shorters Won't Save the Likes of Lehman

Darwinian market bloodletting may eliminate raider targets

Jul 19, 08 9:34 AM CDT
(Newser) - Short-sellers have the power to utterly crush Lehman Brothers, as they did Bear Stearns, writes James Cramer in New York, but it's largely Lehman's own fault. Lehman shares much of the "mismanagement, arrogance and recklessness" that brought down Bear, Cramer opines in a piece that says excoriating short-selling hedge... More »

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Bear Stearns • SEC • financial markets • hedge fund • Lehman Brothers • short selling • financial crisis

SEC Aims to Check False Rumors on Wall Street

Feds worried about false info in skittish market, but nailing culprits is tough task

Jul 14, 08 9:15 AM CDT
(Newser) - After months of urging from business, the Securities and Exchange Commission announced plans yesterday to clamp down on the rumor mill that can induce Wall Street gyrations with false information. Last week's market turbulence pushed the feds to make the move before this week's trading, the New York Times reports—... More »

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Wall Street • investigation • Bear Stearns • SEC • Lehman Brothers • rumor • securities fraud

Hedge Funds Cash In
on Collapse of Bear

Wagering the securities firm stock would fall paid off millions

Mar 20, 08 9:25 AM CDT
(Newser) - The epic collapse of Bear Stearns didn't mean bad news for everyone on Wall Street—several big hedge funds made a mint off it, the Wall Street Journal reports. The funds essentially placed bets that Bear would stumble, then raked in millions when the security firm's shares took a nosedive.... More »

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Related links

Subprimes hit Bear Stearns' 2Q profits
Fox News

Securities and Exchange Commission homepage
SEC

CEO dusts off his crisis-management skills
Reuters

The possible impact on hedge funds
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investigation • subprime mortgages • leveraged buyouts • Bear Stearns • finance • SEC • hedge fund • market • Christopher Cox • CDO

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