- Silicon Valley Isn't Snubbing Morgan Stanley So Far
- What Happened to Stocks? Most Unloved in 50 Years
- What Would Greek Exit Mean for the US Economy?
- Big European Funds Confirm Dumping Euro Assets
- Why Are Greek and Italian Politicians So Bad?
- Facebook Market Makers Lost at Least $100 Million
- Time for Flash Sales to Adapt or Die
- Biggest Comic-Book Movie Franchises
- Greece on the Brink Amid Euro Zone Crisis
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Top 20 European Stocks for Crisis Time: Strategist
- Curt Schilling’s Videogame Company Goes Bust
- Time for Flash Sales to Adapt or Die
- What Flash Sites Are Suggesting About Consumers
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- Laouchez: Leadership in Financial Services — Missing in Action?
- DuckDuckGo Cooks Google’s Goose: Analyst
MOST SHARED
- HMO Stocks May Struggle Over Health Claim Costs
- Facebook Fallout: Silicon Valley Won’t Snub Morgan Stanley
- Stocks to Watch: CHK, PAY, FB, MS & More
- What Would Greek Exit Mean for the US Economy?
- What Every Investor Needs to Know About Greece
- Euro Steadies, Dollar Holds Firm
- China Counter-Challenges US Over Subsidies at WTO
- Bank of Greece Poised to Reveal Crucial Data
- Euro Zone Needs Banking Union: ECB Official
- Are Investors Running Out of Safe Havens to Put Money?
MOST POPULAR
HOT ON FACEBOOK
Bear Stearns Says Worst Is Over After Writedown
Text Size 
Meanwhile, Massachusetts' top securities regulator filed a complaint Wednesday accusing Bear Stearns of improper trading in two in-house hedge funds that later collapsed because of wrong-way bets on risky mortgage holdings.
The administrative complaint was filed by the state's Secretary of the Commonwealth, William Galvin. A copy was posted on his office's Web site.
According to the complaint, Bear had conflicts of interest involving its various affiliated entities that led to improper trading at the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Enhanced Leverage Fund.
While Bear assured investors at one of the funds that proper disclosures were required when trading occurred between related parties, these controls "did not survive the daily ordeals of trading and managing and leveraging," the complaint contends.
The complaint said that "the result of this poor conflict management was that hundreds of transactions did not obtain the approvals required by federal law and promised in the offering documents."
Bear said in mid-July that the two hedge funds had very little value left. They both had invested in collateralized debt obligations -- bonds made up of repackaged mortgages -- which collapsed as homeowner defaults surged.
A Bear Stearns representative was not immediately available for comment.
- The government wants help for its investigation into the mortgage backed security fiasco of 2008.
- Where do the happiest and most optimistic of Asian millionaires live? Click through to find out.
- These athletes are notable for brief moments in the sun and leaving their fame on the field.
- China has been ramping up investments around the world. Here’s a list of the top ten countries.
- Is there a Machiavellian scheme to create a United States of Europe? Patrick Allen looks into it.
- Now you can eat your way across America all year long, from one sizzling bacon festival to another.
Data is a real-time snapshot *Data is delayed at least 15 minutes
