The SEC has ordered more than two dozen hedge funds to hand over trading information as part of its effort to crack down on false rumors and abusive short selling, the WSJ reports this morning.
In the order that went out to hedge funds dated September 22, the SEC reportedly referenced six financial institutions that may have been subject to manipulation: AIG, Goldman Sachs, Lehman Bros., Morgan Stanley, Washington Mutual, and Merrill Lynch & Co. The WSJ reports that the order is “akin to a subpoena” and requires information to be handed over with a sworn statement attesting to its accuracy.
