Hedgies in US downgrade probe

Securities regulator the SEC is believed to have sent subpoenas to hedge funds and other trading firms as it probes possible insider trading before the US government's long-term credit rating was cut last month. Securities and Exchange Commission officials demanded more information about specific trades made shortly before Standard & Poor’s downgraded the country's rating to AA+ from AAA in August. SEC officials are said to be zeroing in on firms that bet the stock market would tumble.