The Wall Street Journal reports that, according to its sources, US regulator The Securities and Exchange Commission 'has ordered an independent inquiry into allegations of sexul misconduct by current and former staff working for its office of the inspector general'.
In the meantime, Reuters reports that a Manhattan federal judge has narrowed, but refused to dismiss, two lawsuits seeking to hold credit rating agencies responsible for misleading investors about the safety of risky debt vehicles that they rated.
U.S. District Judge Shira Scheindlin refused to dismiss claims accusing Moody's Investors Service and Standard & Poor's of negligent misrepresentation over their activities regarding the Cheyne and Rhinebridge structured investment vehicles.
She also dismissed claims alleging aiding and abetting fraud, breach of fiduciary duty and negligence. A third rating agency, Fitch, is also a defendant in the Rhinebridge case.
The unit of the bankrupt company, once run by Jon S. Corzine, was sued by seven former employees, including the head of sales for Asia, seeking more financial information.
Finally, Reuters reports that members of Bernard Madoff's family have been hit with an expanded $255.3m lawsuit.
Irving Picard, the trustee seeking money for Madoff's victims, said family members who worked at Bernard L. Madoff Investment Securities LLC were 'completely derelict' in ensuring that the investment firm's operations were legal.