Securities regulators are investigating Bear Stearns Companies'' alleged irregularities
in trading with two in-house hedge funds that collapsed last summer, the Wall
Street Journal said.
Securities and Exchange Commission and federal prosecutors are already probing
the collapse of the Bear Stearns funds.
sources the paper said Massachusetts securities regulators are investigating whether
the bank traded mortgage-backed securities for its own account with the hedge
funds without notifying the fund''s independent directors in advance.
Massachusetts residents have invested in the Bear Stearns `High-Grade Structured
Credit Strategies Fund'' and the `High-Grade Structured Credit Enhanced Leverage
Fund'', both of which collapsed last summer leaving losses of $1.6 billion, the
are also investigating whether some troubled securities traded by the bank were
offloaded into the hedge funds and whether they were priced properly, the report