The Securities and Exchange Commission is investigating whether Wall Street banks and companies are using complicated bond deals to hide certain risks illegally, sources tell the Wall Street Journal.

At the same time, the government has expanded an inquiry into how banks on Wall Street sell these deals, the Journal reports. The securities are not traded openly on any exchanges; rather their prices are allegedly negotiated between buyers and sellers in private.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]