Two interesting stories currently doing the rounds.
A New York District Judge has ruled that 55 investment banks, including big boys like Citigroup, CSFB, Goldman, JP Morgan, Lehman and Morgan Stanley, should face six class-action lawsuits brought by investors who allege that the firms rigged IPO offerings in the 1990s. Under the microscope will now be six deals brought to market between 1998 and 2000. Investors had actually filed 310 cases, but there aren't enough days in the legal calendar to fit them all in. Thus the six 'test cases'.
And Bear Stearns has now confirmed that it has received subpoenas from US federal investigators who are probing the firm's Chicago office's municipal bond underwriting business. The investigation is said to be focused on a former Bear executive who is thought to have been politically connected to the Illinois state government. The Wall Street firm has said that it is fully co-operating with the authorities.