Wall Street banks are known to fiercely compete for hedge-fund clients because of the lucrative trading profits they provide.
The U.S. Securities and Exchange Commission is now investigating whether some banks crossed the line to win business by offering hedge funds bogus price quotes on hard-to-value bonds, said two people familiar with the matter. The SEC’s concern: As a reward for helping hedge funds make money — by submitting quotes at requested levels — banks got trades steered their way.
‘Enforcement 40’ for 2020
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