The SEC has sent subpoenas to over 50 hedge funds, requesting information regarding their roles in the collapse of Bear Stearns and the recent plunge in Lehman (LEH) shares.
The SEC is demanding both trading records and email correspondences. Some funds are being examined for their roles in both debacles, while others are being investigated for their part in just one or the other.
At the very least, this should produce some apparently scandalous emails and give former Bear executives more material with which to remain in denial about what really caused the failure of Bear Stearns (too much crappy debt on the books, previously destroyed credibility).
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