Excerpt from WSJ
Goldman Is Queried
About Bear's Fall
Lehman Also Calls
By KATE KELLY and SUSANNE CRAIG
July 16, 2008; Page C1
Goldman Sachs Group Inc. is the envy of Wall Street, navigating the credit crisis relatively deftly as many of its peers have been battered.
Now, the big securities firm has come under suspicion, at least from the chiefs of two rivals who have questioned in recent months whether Goldman, even indirectly, might have put pressure on their firms' stocks.
Alan Schwartz, who headed Bear Stearns Cos. when it collapsed in March, has pointedly asked Goldman Chief Executive Officer Lloyd Blankfein whether there was any truth to talk that in the days preceding Bear Stearns's fall, traders in Goldman's London office manipulated the struggling firm's stock, according to a person with knowledge of the conversation.
Lehman Brothers Holdings Inc. CEO Richard Fuld Jr., whose firm's shares also have been battered, also has contacted Mr. Blankfein. "You're not going to like this conversation," Mr. Fuld told Mr. Blankfein, according to people familiar with their talk, but he was hearing "a lot of noise" about Goldman traders who allegedly spread negative rumors about Lehman. In recent months, Mr. Fuld has contacted traders he felt may have been bad-mouthing his stock, according to someone familiar with the matter. Spreading rumors one knows to be false with the intention of manipulating a public company's price is illegal.
Excerpt from Bloomberg
SEC Subpoenas Wall Street in Expanding Hunt for `Manipulators'
By David Scheer
July 16 (Bloomberg) -- The U.S. Securities and Exchange Commission subpoenaed Wall Street's biggest firms and hedge-fund advisers in a widening effort to crack down on suspected manipulation of Lehman Brothers Holdings Inc. and Bear Stearns Cos. shares, three people familiar with the situation said.
The SEC's enforcement unit demanded information from banks including Deutsche Bank AG, Goldman Sachs Group Inc. and Merrill Lynch & Co., according to two of the people, who declined to be identified because the inquiries aren't public. The Washington- based regulator is seeking trading records and e-mails, one of them said.http://www.bloomberg.com/apps/news?pid=20601087&sid=aForAmXi1B.w&refer=home