Dec
05
SEC Probes If Banks Helped Hedge Funds Inflate Returns
By-
Regulator asking whether brokers gave funds sham bond quotes
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Banks facing questions from agency include JPMorgan and Citi
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…
SEC Probes If Banks Helped Hedge Funds Inflate Returns
