Bear Stearns Examines Mutual Fund Trades

Bear Stearns Cos. is examining whether executives in its brokerage unit approved improper mutual fund trades, company records show.

The New York-based firm is checking e-mails from 109 employees as it seeks details of trades to determine whether high-ranking executives approved transactions that diluted the returns of long-term fund investors, records show.

Bear Stearns disclosed last October that it faced regulatory probes and in June said the Securities and Exchange Commission had warned the firm of possible sanctions for improper fund transactions.

Regulators haven’t publicly accused Bear Stearns or any of its employees of wrongdoing. The company declined to comment.