Entries in subpoena (3)


SEC Subpoenas Firms on Possible Insider Trading before US Downgrade

Ryan McVay/Thinkstock(WASHINGTON) -- Federal financial regulators have reportedly stepped up their investigation into cases of possible insider trading before the U.S. government's credit rating was downgraded last month.

Citing people familiar with the matter, The Wall Street Journal says the Securities and Exchange Commission wants to know more about traders who bet the stock market would tumble just before Standard and Poor's downgraded the U.S. from its triple-A rating on Aug. 5.  Those trades could have been hugely profitable.

SEC regulators have issued subpoenas, demanding more information from hedge funds, specialized trading shops and other firms, according to the Journal.  But it may be difficult to prove wrongdoing -- the downgrade was rumored for weeks, especially in the hours before the announcement was made.

Copyright 2011 ABC News Radio


NY AG Probing Life Insurance Payouts, Issues Subpoenas

Hemera Technologies/Thinkstock(NEW YORK) -- Some big life insurance firms are reportedly under investigation regarding payments on their policies.

Citing people familiar with the matter, the Wall Street Journal reports that New York Attorney General Eric Schneiderman has handed down subpoenas to at least nine leading insurance companies in an effort to find out whether they have done what they should to make sure policies of deceased customers are paid to beneficiaries.

New York's insurance department is also sending letters to more than 160 companies, urging them to run their lists of policyholders through a government database to find out if death benefits are overdue, according to the Journal.

This latest probe follows public hearings in California and Florida regarding the claims-payment issue.

Copyright 2011 ABC News Radio


Manhattan DA Issues Goldman Sachs a Subpoena

John Foxx | Thinkstock(NEW YORK) --– The Manhattan District Attorney's office issued Goldman Sachs Group Inc. (GS) a subpoena as a result of a report from the Senate Permanent Subcommittee on Investigations.

Goldman Sachs was investigated by Senate Subcommittee and the Securities and Exchange Commission for its role in the national mortgage crisis. In the 639-page report, released in April, Goldman Sachs is accused of making billions of dollars from misleading investors and clients.

Bloomberg News reported on the subpoena and stated that David Wells, a spokesman for the Wall Street firm, said the company does not comment on "specific regulatory or legal issues."

Shares fell by 2 percent after news of the subpoena on Thursday.

Copyright 2011 ABC News Radio

ABC News Radio