Senator Questions Pequot Process

In a letter to Securities and Exchange Commission Chairman Christopher Cox, Senate Finance Committee, Chairman Charles E. Grassley (R-Iowa) questioned whether the agency's rules have stalled inquiries about insider trading at a $7 billion hedge fund, Bloomberg News reports.

In June, former SEC attorney Gary J. Aguirre, last year, told the Senate Judiciary Committee that he was forbidden from interviewing  Morgan Stanley Chairman John Mack about insider trading at New York-based Pequot Capital Management. Mack served briefly as chairman of the fund. Aguirre was fired from the SEC last year.

"I have serious concerns about indications that the SEC plans to impose unnecessary delays on Congress's ability to get to the bottom of this important matter," Grassley wrote.

Senate investigators launched a probe to determine whether political ties tempered the SEC's investigation.

Since Aguirre's statements, the SEC has interviewed Mack.

"We are committed to cooperate with the committee on finance and its staff to satisfy them as to the integrity of our investigative process," said John Heine, an SEC spokesman.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.