The Securities and Exchange Commission, under fire for failing to heed warnings about the Ponzi scheme that was apparently run by Bernard L. Madoff and lasted for decades, is now under scrutiny for its handling of insider-trading accusations involving former executives at Lehman Brothers.
In a letter sent to the commission last Thursday, Charles E. Grassley, the Iowa Republican who is the ranking member of the Senate Finance Committee, asked Mary L. Schapiro, the chairwoman of the S.E.C., whether it had followed up on allegations that were brought to its attention last spring involving a unit at Lehman Brothers. Employees in the unit, known as the Product Management Group, appear to have tipped off clients and traders about the content of the firm’s research reports before they were released, a former Lehman analyst said.
The letter does not disclose who might have received the tips, if they were made.
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