Money Management Executive

Galvin Charges Bear Stearns With Improper Trading in Hedge Funds

November 15, 2007, 1:00 a.m. EST 1 Min Read

Massachusetts Secretary of the Commonwealth William Galvin filed a civil complaint against Bear Stearns on Wednesday, charging the firm with improperly trading mortgage-backed and collateralized debt obligation securities from its own account with the two failed hedge funds. Galvin said the trading began in 2004 and continued through this year.

Galvin said the funds’ own prospectuses precluded them from trading in such instruments. In addition, federal and state securities laws require funds to notify their directors when they trade in such instruments.

The secretary of the commonwealth also said that the directors of the Bear Stearns High Grade Fund didn’t honor his subpoenas or make themselves available for questioning. Galvin’s office plans to fine Bear Stearns.

For reprint and licensing requests for this article, click here.

Money Management Executive

TRENDING

Retirement

How advisors can help clients get the most out of Roth IRAs

Are clients' savings working for them? How to best guide them on the pros and cons of Roth IRAs and other savings programs.

By Courtney Hoff Dockerty

1h ago
Tax

IRA heirs, planners get additional RMD breathing room — again

Financial advisors, tax professionals and their clients get another year to think through potential tax, distribution and trust strategies, according to experts.

By Tobias Salinger

3h ago
Investment strategies

$630B active-ETF boom dominated by 10 players

The flood of money into exchange traded funds does little to help most wealth managers who used to reap hefty fees from actively managed mutual funds.

By Katie Greifeld

5h ago

MORE FROM FINANCIAL PLANNING

Retirement

How advisors can help clients get the most out of Roth IRAs

Are clients' savings working for them? How to best guide them on the pros and cons of Roth IRAs and other savings programs.

By Courtney Hoff Dockerty

1h ago
Tax

IRA heirs, planners get additional RMD breathing room — again

Financial advisors, tax professionals and their clients get another year to think through potential tax, distribution and trust strategies, according to experts.

By Tobias Salinger

3h ago
Wealth management

Attention, RIAs: Goldman wants to help you help HNW clients

The Wall Street giant has been moving away from providing in-house retail investment advice to finding ways it can support smaller firms.

By Dan Shaw

6h ago
Tax

IRS, Treasury finalize rules on energy tax credit transfers

The IRS and the Treasury released final regs on the tax credits, with specific rules for partnerships and S corporations.

By Michael Cohn

April 25
Retirement

Closing loopholes or blocking access? Reactions to the final DOL rule

Here's how commenters such as the AARP, SIFMA, FSI, the Consumer Federation, NAPFA, the CFP Board and others view the Department of Labor's retirement advice regulation.

By Tobias Salinger

April 25
Industry News

Raymond James' wealth unit posts record profits, assets

In the first three months of 2024, both profits and client assets reached new heights at RayJay's Private Client Group.

By Nathan Place

April 25