Regulators Are Probing How Goldman, Citi and Others Divvied Up Bonds
Source: Wall Street Journal
Securities regulators have opened an inquiry into the way Goldman Sachs Group Inc., Citigroup Inc. and other banks divvy up new bond issues among investors, people familiar with the matter said.
The Securities and Exchange Commission has sent requests for information about how banks allocate corporate-bond deals and how they traded those bonds after they were sold, the people said. The regulator is examining whether banks grant some money managers too much influence in these offerings, leaving smaller bond investors at a disadvantage, said the people.
The SEC, which made its requests during the fourth quarter, sought information about several specific deals, including Verizon Communications Inc.'s record-setting $49 billion bond sale last September, said people familiar with the matter.
The probe is surfacing as Wall Street comes off a record year for issuance of corporate bonds, such as the Verizon deal and a $17 billion offering from Apple Inc.
Read more: http://archive.is/9EjEA
story also reported by AP and Reuters
MannyGoldstein
(34,589 posts)I'm sure they're quaking in their $900 shoes.
L0oniX
(31,493 posts)chuckstevens
(1,201 posts)Nothing will happen.
Wilms
(26,795 posts)Just don't hurt the banks.