SEC officials will testify before a Senate committee today to deny allegations the agency pulled back from a probe of hedge fund Pequot Capital Management in order to protect well-connected people, The Wall Street Journal says. Meanwhile, The New York Times is reporting that a second SEC official with concerns about the probe has surfaced -- and he too will testify before Congress.
The SEC, concerned about stock manipulation, voted Monday to impose restrictions on short selling during an initial public offering, according to MarketWatch. Meanwhile, two hedge funds are suing some of the biggest names on Wall Street in connection with short sale fees.
Jefferies & Co. will pay $9.7 million to settle charges it illegally sought to manipulate brokers at Fidelity Investments by spending millions of dollars on gifts. Fidelity traders were showered with pricey perks including private vacations, tickets to a Justin Timberlake and Christina Aguilera concert, 2004 Super Bowl parties and a dozen bottles of Chateau Petrus wine reportedly worth $625 each.
The highest-ranking woman at Goldman Sachs will retire from the firm in mid-January. Suzanne Nora Johnson, a vice chairman and a member of Goldman Sachs' management committee, is a two-decade veteran of the firm.