Securities regulators in Illinois are pressuring Bear Stearns to turn over documents that contain proof of market-timing improprieties, it was reported last week. Illinois sent a notice to the firm on Feb. 10 asking its executives to appear before a hearing on April 6 to fess up as to why they failed to respond to a subpoena the month before. The state threatened Bear with a penalty and/or revocation of its state license.
"We take non-responsiveness very seriously," Tanya Solov, director of the Illinois securities department, said. However, she added, Illinois expects Bear Stearns to comply. Elizabeth Ventura, a Bear Stearns spokeswoman, said the firm has already supplied Illinois with "thousands of pages of documents" and that it would willingly continue to supply it with additional records.