Securities regulators in Illinois are pressuring Bear Stearns to turn over documents that contain proof of market-timing improprieties, Dow Jones reports, citing unnamed sources.
Illinois sent a notice to the firm on Feb. 10 asking its executives to appear before a hearing on April 6 to fess up on why they failed to respond to a subpoena the month before. The state told the firm that it might penalize it with a fine or revocation of its state license should it not comply with its request.
"We take non-responsiveness very seriously," Tanya Solov, director of the Illinois securities department, told Dow Jones. 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 supply it with additional records.