SEC Reportedly Targets Goldman, J.P. Morgan in Laddering Probe

The Securities and Exchange Commission has reportedly recommended filing charges of civil securities fraud and market manipulation against Goldman Sachs(GS Quote) for alleged IPO "laddering." The agency also indicated J.P. Morgan Chase's(JPM Quote) 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. ...