*good for lawyers
Several U.S. investigations into subprime lenders involve possible insider trading before announcements of negative news about the lender, a Securities and Exchange Commission member said Friday.
SEC Commissioner Elisse Walter said the agency is looking at whether subprime lenders properly accounted for loan loss reserves, impairment of asset values and whether they overvalued foreclosed property and other assets.
In remarks to a congressional hearing, Walter also said the SEC was looking at whether subprime lenders properly disclosed information, including data regarding loan quality, credit risks and the amount and types of subprime exposure.
She also told the U.S. House Financial Services Committee that the SEC has 'dozens' of active investigations involving individuals associated with hedge funds.
"The SEC has become particularly concerned about possible hedge fund offering frauds, where fraudsters use the nontransparent and largely unregulated status of hedge funds to conceal large Ponzi schemes,'' Walter said. more..
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