Probe targets banks’ financing of fund trades
From Associated Press, Bloomberg News, Los Angeles Times and New York Times reports
Friday, January 9, 2004
The New York State attorney general and the Securities and Exchange Commission are investigating whether some large banks financed improper mutual fund trades by hedge funds. The financings, which involved total return swaps, are reminiscent of the sort of transactions done by bankers on behalf of the Enron Corp. to conceal debt and inflate its earnings, regulators said.
