Massachusetts’ securities regulator has joined other regulators in investigating whether executives at Bear Stearns traded at fair prices in the two hedge funds that recently failed without informing other investors, Reuters reports.
“We are looking at trading in those two funds and whether there might have been conflicts,” said Brian McNiff, a spokesman for Massachusetts Secretary of the Commonwealth William Galvin.
Galvin began investigating Bear Stearns research on subprime lenders in March, according to McNiff.
The two funds, the Bear Stearns High-Grade Structured Credit Strategies Fund and the High-Grade Structured Enhanced Leverage Fund, collapsed after losing $1.6 billion.
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