The New York State Attorney General's Office and the Securities and Exchange Commission have joined the investigation at Bear Stearns into how the firm allegedly enabling a hedge fund to market time a number of mutual funds, according to a company filing with the SEC on Monday. The U.S. Attorney General's office, meanwhile, is looking into how the firm may have valued $16 million worth of complex debt derivatives, according to report today.

As a result of the ongoing investigation, Bear Stearns has set aside an additional $100 million for legal fess, on top of the $97.8 million it already put into reserve in the fourth quarter. The $200 million charge will impact Bear's second-quarter earnings, the firm said.

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