SEC Probes Firms for Trades Before U.S. Rate Cut: Report:
NEW YORK (TheStreet) -- Securities regulators have sent subpoenas to hedge funds and other firms as they probe possible insider trading before the U.S. government's long-term credit rating was cut last month, The Wall Street Journal reported, citing people familiar with the matter.
Securities and Exchange Commission officials demanded more information about specific trades made shortly before Standard & Poor's downgraded the U.S.'s rating to double-A-plus from triple-A on Aug. 5, the people said.
SEC officials are zeroing in on firms that bet the stock market would tumble, the Journal said.
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