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To: Jorj X Mckie who wrote (11381)	11/6/2002 8:59:27 AM
From: Sojourner Smith	Read Replies (1) \| Respond to of 57110

I was expecting to see a gap-down to show up on those two, but I don't trust the pre-market today. Jorj, do you buy into the JPM rumor that is going around that JPM has hidden massive losses and it will come to light in Dec? I can't find any reliable source on that.

To: Jorj X Mckie who wrote (11381)	11/6/2002 9:06:47 AM
From: X Y Zebra	Respond to of 57110

This ? thestreet.com SEC Reportedly Targets Goldman, J.P. Morgan in Laddering Probe By TSC Staff 11/06/2002 08:01 AM EST The Securities and Exchange Commission has reportedly recommended filing charges of civil securities fraud and market manipulation against Goldman Sachs (GS:NYSE - news - commentary - research - analysis) for alleged IPO "laddering." The agency also indicated J.P. Morgan Chase's (JPM:NYSE - news - commentary - research - analysis) securities unit could face similar civil charges. The agency's notification to the two firms, reported in Wednesday's Wall Street Journal, marks a step up in its investigation into laddering -- when investors get early shares of hot initial public offerings from underwriters after they indicate they plan to buy more stock later at higher prices. Laddering has been cited as a possible explanation for the unprecedented run-up in opening-day prices of IPOs in the late 1990s. Those triple-digit one-day gains often burned individual investors as the inflated stocks fell back. In a statement, a Goldman spokesman said, "We categorically deny any allegations of wrongdoing ... and believe there is no basis for the SEC to take such a position." A J.P. Morgan spokeswoman also denied any wrongdoing. According to the Journal, the agency's enforcement staff sent the warning of the possible charges to Goldman in mid-October. The J.P. Morgan notice came more recently and did not involve Hambrecht & Quist Group, which Chase Manhattan acquired before the Chase-Morgan merger. The laddering developments -- on top of recent revelations of allegedly spinning hot IPOs to executives as a quid pro quo for new underwriting business -- come as Wall Street firms and regulators move toward a global settlement of the various investigations into alleged fraud and abuse by the firms.