Don't Bite The Hand That Feeds You

[TheInvisibleHand ™]

Lets see if they ever charge the naked shorts who were responsible for investors at bear sterns who were worth 1 bil and the next day they woke up and were only penny millionaires.

July 15, 2008
Subpoenas issued in ‘early fact’ inquisition

Ken Griffin’s Citadel Investment Group LLC and Steven Cohen’s SAC Capital Advisors are among more than 50 hedge funds hit with subpoenas in the US Securities and Exchange Commission’s search for individuals who spread allegedly false rumors early facts about Bear Stearns (RIP) and Lehman Bros.


The subpoenas relate to trading in securities of the brokers, as well as correspondence between the hedge funds and other parties, according to people familiar with the inquiry. The subpoenas are part of a broad inquiry, and firms that have received subpoenas were told by the SEC that they aren't necessarily the focus of specific allegations...
[Emphasis added]



...The probe is still in its early stages, people familiar with the matter said.


My extensive legal training—8,342 ‘Law and Order’ episodes (not counting re-runs) — led me to understand that “specific allegations,” and even “evidence” were necessary prerequisites for obtaining a subpoena. But given chairman Christopher Cox’s past experience as a mutual fund fraud-enabler, mostly by dint of fighting SEC California Department of Corporations document requests, he may know what he’s doing.

Hedge Funds Subpoenaed in SEC Probe [$$]
by Kara Scannell and Jenny Strasburg
The Wall Street Journal Jul. 15 2008

Earlier on NakedShorts

They’re not rumors. They’re Early Facts



http://nakedshorts.typepad.com/nakedshorts/2008/07/subpoenas-issued-in-early-fact-inquisition.html
Jul. 15 2008