Law firm Milberg, Weiss, Bershad & Schulman may file a class-action lawsuit against prime brokers on behalf of hedge funds. If a suit is filed it is likely to center on naked short selling, although a partner in the firm says Milberg, Weiss is still thinking about its next move.
The SEC issued guidelines for issuing subpoenas to reporters, saying it would take such action only as a last resort. The move comes after Chairman Christopher Cox publicly rebuked agency officials in February for subpoenaing journalists without consulting with the commissioners.
The NYSE's regulatory unit announced fines against a number of Wall Street firms, including a $200,000 penalty against Goldman Sachs unit Spear, Leeds and Kellogg Specialists for failing to disclose contacts with prospective listing companies. Other firms fined for various infractions were E*Trade Clearing LLC, Wells Fargo Van Kasper, and Adams Harkness Inc. All the firms agreed to the fines without admitting or denying guilt, according to the NYSE.