Lehman Brothers Holdings Inc said it is cooperating with a US Securities and Exchange Commission probe of brokers in the US$204 billion auction-rate bond market.
Lehman "has received a letter from the commission requesting that it voluntarily conduct an investigation regarding its practices and procedures in connection with those markets," the firm said today in an SEC filing on behalf of the Energy Income and Growth Fund.
"Lehman Brothers is cooperating with the commission in providing the requested information."
The SEC is investigating whether brokers improperly tipped customers to other investors' bids in auctions that set yields for the securities, people familiar with the matter have said.
Investors aren't supposed to be able to see competing bids.
Lehman spokeswoman Hannah Burns declined to comment. Lehman included the disclosure in the offering documents for the sale of US$34 million in notes by the energy fund, a sale that the firm is underwriting. The SEC asked about 25 firms that participate in the auction-rate market to conduct similar investigations. The agency's enforcement staff asked brokers to provide reports "detailing any potentially deceptive, dishonest or unfair practices," according to a memo sent to members in May by the Bond Market Association, the Securities Industry Association and the American Bar Association.
UBS AG, Citigroup Inc, Merrill Lynch & Co, Wachovia Corp, Bank of America Corp and AG Edwards Inc have previously disclosed that they are subjects of the inquiry. The SEC hasn't publicly accused any firm of wrongdoing in connection with the probe.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft