NEW YORK Feb 28 The U.S. Securities and
Exchange Commission has launched a probe into how Wall Street
banks, including Goldman Sachs Group Inc and Citigroup
Inc, allocate and trade corporate bonds, the Wall Street
Journal reported on Friday.
The SEC is examining whether banks favor big investors,
leaving smaller ones at a disadvantage, the newspaper said,
citing unidentified people familiar with the matter.
The regulator has made requests about several deals,
including Verizon Communications Inc's $49 billion bond
offering last year, the Journal said.
Representatives of the banks declined to comment. SEC
officials did not immediately respond to requests for comment.
News of the SEC probe followed a disclosure by Goldman Sachs
on Friday morning that a regulator was looking into its
"allocations of and trading in fixed-income securities," as well
as its financial advisory services.
In the prior quarter, the bank's long list of regulatory
investigations, reviews and litigation into matters ranging from
the municipal-bond market to insider trading did not include
Goldman also lowered its estimate of legal losses it may
face beyond what it has set aside to $3.6 billion from a
previous estimate of $4 billion.