Liz-Vision
  • July 30, 2008 06:30 PM EDT by Liz Claman

    Handcuffs are ready: Who spread the rumors about Lehman Bros?

    Hi gang,

    The Securities and Exchange Commission is determined to find out. In the wake of Bear Stearns disappearing into the ether as a result of what some believe to have been vicious rumors spread by shortsellers (people betting the stock would go down), SEC investigators have sent out dozens of subpoenas to the hedge fund boys and others who the SEC believes may have played a part in spreading rumors to bring down Lehman Bros. The SEC is asking for transcripts of phone calls, emails, documents, all kinds of things that had the potential to spread like wildfire to bring Lehman shares down sharply. Starting on June 3rd, all kinds of rumors started blazing through the markets... terribly negative--and some totally false--- rumors that inspired several days of double digit percentage losses for Lehman stock. It was evident to me and everyone at Fox Business that Lehman was under a Bear attack. The claws were out but you just couldn't see the Bear itself. Sure, Lehman shortseller David Einhorn was getting his big moment in front of the cameras---CNBC invited him to co-host one of their shows in the midst of it---but the SEC is looking for hidden bears now too. Will they get them? What challenges is the SEC facing in going after these people? Check out what former SEC Chairman Harvey Pitt told me during my interview with him today on Countdown to the Closing Bell. And wait til you hear what he really thinks brought Bear Stearns down.

Rick La Pointe

Great Interview Liz: Your direct questions about short selling by hedge funds and others, as well as Harvey's agreeement with your assement of Greed and distruction of Companies and other financial institutions, point out a need for STRONG regulation by the SEC as well as other Federal Agencies, to save this countries economy.

August 13, 2008 at 9:32 pm

richard panico

If they put handcuff on all the bankers and brokers who knowingly stole all the money from normal everyday people and left them without retirement money or a future the handcuff manufacture would have to work 24/7 for the next 5 years. The real answer to the financial problem is the same answer to the question everyone in Massachusetts is asking: If all the politicians in Mass. were on a cruise ship and it hit an an object in the water and sank, who would be saved? the answer is below. eht elpoep fo sttesuhcassam !!!!!

August 5, 2008 at 8:22 am

chuck

I've been following this story for sometime. For one thing it's a compelling interesting story my perspective. I've commented on Naked Short Selling in Alexi's blog on this issue. But when I heard the SEC was coming in rumors on Wall Street,especilally when a rumor brings downs an Investment brokerage or a bank. I get the impression that Wall Street is real sensative to rumors. And rumors when they have legs can be either be benefiticial or detrimental when the facts emerge. The Bear Sterns Debacle has revealed something about Wall Street Bankers as well and how they act. But to control rumors,gossip on Wall Street would be difficult for so many fly in and out. I bet youd'd heard some from your own sources. But when one bank gets in trouble like Bear Sterns u can wonder how many more banks on the street could be in trouble down the road. Now a terrific example of a rumor causing panic and run on a bank is Senator Schumer and Indymac. When I heard the story of what he put out in his letter on Indymac it cause panic for the bank and by Friday Evening FDIC regulators moved in on IndyMac. My impression,perception is that Senator Schumer had Inside Information. It raises all sorts of Ethical issues I believe the SEC and other agencies could look into Senator Schumor on. But the big question would be this: why did he choose to go after Indymac in Pasadena,Ca where on Wall Street there are larger game to go after. What his actions using that inside information but the question I would raise is this: senator had did u acquire it? are you on the banking committee? Still I can't shake the susupisiouns of Inside information, oh how he used it.

July 31, 2008 at 11:47 am

Thomas Byrnes

Lehman Bros cheats and has been cheating all along... it is one of the "special" financial institutions, protected by big brother. Otherwise, it would already be out of business. If the rumors were not true, then Lehman Bros would have been just fine. But Lehman Bros is according to an objective view of their balancesheets, is in major trouble.

July 31, 2008 at 8:30 am

Thomas

Clear and specific. I like it.

July 31, 2008 at 1:41 am

Micaiah2004

When will the SEC investigate the naked short selling of mining stocks? When will the SEC investigate the handful of short sellers who take a monopolistic position against gold and silver futures??????????????????? Why is the SEC lazy in going after the large firms/hedge funds who are in fact manipulating the mining company shares, e.g. Minefinders and the commodity futures for precious metals????? Could it be that the FED/Treas cartel is one of the naked short sellers?????? Investigate that w/ the FBI, Dept of Justice. SEC doesn't need more powers...it just needs to enforce the existing laws against large institutional firms who are trading illegally.

July 30, 2008 at 9:03 pm

Paul

Normally, there is no smoke without a "Fire"!

July 30, 2008 at 7:33 pm

about this blog

  • Liz Claman joined FOX Business Network (FBN) as an anchor in October 2007. Her debut included an exclusive interview with Berkshire Hathaway CEO and legendary investor Warren Buffett.

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