SEC Starts Turning Over Rocks, Unpleasant Stuff Found Beneath

This is a real can of worms that we are getting into.

SEC probing Bear hedge fund losses

NEW YORK, June 25 (Reuters) - Bear Stearns Cos. Inc. (BSC.N: Quote, Profile , Research), which recently agreed to bail out a failing hedge fund it manages, is facing a preliminary inquiry from the U.S. Securities and Exchange Commission, BusinessWeek reported on Monday.

The SEC is looking into why Bear Stearns restated results from the High-Grade Structured Credit Strategies Enhanced Leverage Fund. The Enhanced Leverage fund is the sister of the fund that Bear said it would bail out with an up to $3.2 billion financing package.

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