Municipal bond underwriting practices at
While the company did not comment on what regulators are specifically looking for, it may be related to a whistleblower suit filed earlier this year, which prompted questioning as to how Bear Stearns secured a $10 billion bond underwriting assignment in 2003.
This past summer, Bear Stearns also received a Wells notice from the SEC for allegations of possible improper mutual fund trades. While the company has not provided any further details, it did admit that it has been named in 13 class-action lawsuits on behalf of mutual fund shareholders for allowing market timing in its funds.
Regarding the new charges, Bear Stearns also received notices from the office of Illinoiss executive inspector general and the states securities department. The New York-based firm said it is fully cooperating with regulators.
