Federal investigators have launched a probe into block trading at Wall Street hedge funds and banks including Morgan Stanley and Goldman Sachs Group, the Wall Street Journal reported, citing people familiar with the matter. The Securities and Exchange Commission (SEC), along with the Department of Justice, is investigating whether bankers may have improperly tipped off hedge funds ahead of large share sales, the report said on Monday.
The SEC has sent subpoenas to several hedge funds and banks, demanding trading records and information about investors' communication with bankers, according to the WSJ report which also said regulators began looking into irregularities
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