“After years of operating in the shadows, dark pools are coming into the light. “Goldman Sachs Group Inc. and Credit Suisse Group AG, two of the biggest operators of opaque trading venues known as dark pools, which execute trades away from stock exchanges, on Monday published documents explaining in detail how their venues work. “The disclosures came on the […]
“The Securities and Exchange Commission has rolled out its intentions to regulate high-frequency trading, making stricter regulation in some form a strong possibility, but the agency faces more work and some challenging obstacles before it can put new rules in the books. “SEC Chair Mary Jo White in a speech last week outlined her goals […]
“Pension fund investors lost billions of dollars trusting the rosy credit ratings stamped on troubled mortgage securities before the 2008 crisis. In its aftermath, they have spent years and many dollars suing Moody’sand Standard & Poor’s, the main purveyors of those dubious grades. “That these funds and other plaintiffs are trying to hold the ratings […]
“Pushback by the Securities and Exchange Commission is complicating a regulatory effort to investigate whether large asset managers should be labeled “systemically risky.” “Chairman Mary Jo White and other top SEC officials have voiced skepticism of the idea, joining lawmakers from both political parties who suggest it is unnecessary. Their intervention has significantly bolstered efforts […]
“A Securities and Exchange Commission official said the private-equity industry has more work to do concerning disclosure to investors, building on comments a month earlier from one of the regulatory body’s directors. “Igor Rozenblit, co-head of the SEC’s private funds unit, called the private- equity industry to task over its communication and transparency with investors, […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“U.S. securities regulators and the Chinese affiliates of the Big Four accounting firms have been discussing a potential settlement of their dispute over access to the firms’ audit documents about their Chinese clients, according to a filing late Monday. “The firms—the Chinese arms of PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG—have been in […]
“The pace of passing major financial reform rules has slowed to a crawl at the US Securities and Exchange Commission, frustrating some officials at the SEC and at other regulatory agencies who are upset by the lack of activity, according to people with direct knowledge of the matter. “While the SEC has issued numerous enforcement actions this […]
“It is rare that the Securities and Exchange Commission announces a new approach to pursuing violations. Mary Jo White, the agency’s chairwoman, did just that last week when she pointed to a seldom-used provision of the federal securities laws that the S.E.C. will employ against people who use others to do their bidding. “In a speech […]
“The Securities and Exchange Commission has kept the credit rating industry — whose dominant members, Standard & Poor’s and Moody’s, played a notoriously key role in the financial crisis — in legal limbo for four years. And the industry’s just fine with that. “Apparently so are members of Congress, who have failed to press the […]
“The Financial Industry Regulatory Authority has fined Morgan Stanley $5 million, saying that the firm did not follow proper procedures in the initial public offerings for 83 companies including Facebook and Yelp. “The bank failed to distinguish between two separate types of nonbinding offers when it solicited investors for I.P.O.s., said the industry self-regulatory group, known […]
” JPMorgan Chase & Co (JPM.N) has won preliminary approval from a U.S. judge for its agreement to pay $280 million to resolve claims that it misled investors in billions of dollars worth of mortgage-backed securities. “U.S. District Judge Pamela Chen, in Brooklyn, New York, issued the preliminary approval on Friday. The settlement, which is subject to […]
“A top Securities and Exchange Commission official said Tuesday the agency’s recent examinations of private-equity firms had found more than half allocated expenses and collected fees inappropriately, and in some cases, illegally. “Drew Bowden, the director of the SEC’s Office of Compliance Inspections and Examinations, said the agency has identified ‘violations of law or material […]
“Even four years after the crash that wiped out $1 trillion in wealth in the blink of an eye, investors and academics still haven’t agreed on what caused one of the most vicious and inexplicable short circuiting of markets to occur. “On that day, the Dow Jones industrial average plunged roughly 1,000 points only to […]
“Banks again are doling out money to hedge funds and other investors to finance purchases of complex debt securities, returning to a practice that helped fuel the debt boom ahead of the financial crisis. “RBC Capital Markets, Société Générale SA and Wells Fargo & Co. are among the banks offering to let investors borrow money, also known as providing leverage, […]
“Last year, when President Obama named Mary Jo White as his pick to chair the Securities and Exchange Commission, he cast the nomination as a shot across the bow of Wall Street wrong-doers. ‘It’s not enough to change the law,’ he said. ‘We also need cops on the beat to enforce the law.’ “The line was a […]
“The Securities and Exchange Commission has sent out subpoenas and demands for records to brokerage companies as part of a probe into how retail customers’ orders are routed, executed and filled, according to several people familiar with the matter. “The SEC’s enforcement division is investigating whether retail customers are receiving the best price and the most efficient execution for […]
“In the wake of this week’s unusual hostile bid for Allergan, one of the most pressing questions has been whether William A. Ackman, the activist investor who runs Pershing Square Capital Management, engaged in insider trading.” “By accumulating a large stake in Allergan while knowing a bid was imminent, Mr. Ackman clearly had an advantage over other […]
“(Reuters) – A group of British public sector pension funds has heaped pressure on Barclays (BARC.L) ahead of its annual general meeting by saying it has governance concerns over the company’s search for a new chairman.” “That could add even more spice to Thursday’s meeting as investors are asked to approve the bank’s plan to […]
“The Depository Trust & Clearing Corporation, which processes all U.S. stock and fixed income trades, said on Wednesday it supports shortening the settlement cycle for U.S. equities, corporate and municipal bonds, and unit investment trust trades. “The settlement cycle, which refers to the time between when a trade is made and the time that the […]
“The hedge fund billionaire William A. Ackman may be plotting his next big stock move, even as he is on the media circuit explaining his decision to partner with Valeant Pharmaceuticals to make a $45.6 billion hostile bid for the Botox manufacturer Allergan. “In amassing its 9.7 percent stake in Allergan, Mr. Ackman’s Pershing Square […]
“One trading day after announcing the news that the huge hedge fund he runs, Pershing Square Capital Management, had partnered with Valeant Pharmaceuticals International to make an unsolicited $45.6 billion cash and stock takeover bid for Allergan, William A. Ackman is sitting on a paper profit of more than $1 billion on the Allergan shares […]
“From 2006 to 2009, Provident Asset Management raised $485 million from 7,700 investors who were drawn to its promises of annual returns as high as 18 percent on oil and gas assets. Law firm Mick & Associates helped. Provident paid Mick to provide “due diligence” reports to help brokers decide whether to recommend the investments […]
“The former Nvidia employee who the authorities contend supplied inside information about the chip maker’s earnings to a group of hedge fund traders and analysts has reached a settlement with securities regulators, the regulators said on Wednesday. “The information about Nvidia’s corporate earnings that the employee, Chris Choi, provided was eventually shared among a group […]
“What looks like insider trading to one federal judge might not rise to the level of a crime to another. Or, in the case of two hedge fund managers fighting their convictions, to another three judges.” “Level Global Investors LP co-founder Anthony Chiasson and ex-Diamondback Capital Management LLC portfolio manager Todd Newman claim they were […]
“Much like the game of telephone, the final recipient of inside information may know little about who started the process or how many steps it took before arriving. When prosecutors want to pursue charges against the recipients of confidential information — the “tippees” — the issue is often how far down the chain they can […]
“A US prosecutor barely started her argument to defend an insider trading conviction when judges on a US appeals court stopped her in her tracks.” “They wanted to know if the government had shopped a case until it landed before a judge who saw the insider trading law the way prosecutors had interpreted it: a trader could […]
“Betting against U.S. government debt this year is turning out to be a fool’s errand. Just ask Wall Street’s biggest bond dealers. “While the losses that their economists predicted have yet to materialize, JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and the 20 other firms that trade with the Federal Reserve began wagering on […]
“Merrill Lynch is dangling a new incentive in front of its brokers by creating a “recognition club” for those who bring in $8 million or more a year from clients, more than doubling the top goals set by its securities industry rivals. “Until now, Merrill Lynch Wealth Management’s top recognition club was its “Circle of […]
“For months now, the U.S. Attorney for the Southern District of New York, Preet Bharara, has been boasting of his office’s perfect record on insider trading convictions and guilty pleas, which now stands at 80-0. But on Tuesday some potential cracks could appear in that pristine run. “The U.S. Court of Appeals for the Second […]
“Bank of America Corp. and the New York Stock Exchange were among dozens of exchanges, brokerages and traders sued over high-frequency trading by the city of Providence, Rhode Island, over claims they rigged securities markets to divert billions of dollars from buyers and sellers of shares. “Scrutiny of high-frequency trading and whether it gives some […]
“The Volcker Rule doesn’t go into effect until 2015, but that hasn’t stopped big bankers and their supporters in Washington from trying to undermine it. “The latest fight involves another complex Wall Street creation, a financial instrument known as a collateralized loan obligation. Big banks want to be allowed to own them but regulators say […]
“Securities watchdogs have inadequate resources to cope with their new regulatory responsibility for monitoring systemic risk, the EU’s top markets regulator has warned. “Steven Maijoor, chairman of the European Securities and Markets Authority , said legislation passed last week by the European parliament amounted to the “biggest overhaul of the capital markets in a generation” […]
“U.S. appeals court is set hear a case whose outcome could make it harder for the government to prosecute insider trading and potentially jeopardize several high-profile guilty verdicts, including that of SAC Capital Advisors portfolio manager Michael Steinberg. “The question facing the 2nd U.S. Circuit Court of Appeals in New York on Tuesday is one […]
“The U.S. Securities and Exchange Commission is weighing a requirement that brokers tell investors exactly where their stock trades go to be executed, a proposal that may address complaints that the decisions are sometimes made against the client’s best interests. “The proposal could give investors more insight into whether they are getting the best price […]
“(Reuters) – The U.S. Treasury Department is forming a new unit to monitor the municipal bond market, the Wall Street Journal reported, citing a Treasury official.” “By boosting the department’s monitoring of municipal finance, the Treasury hopes to better understand the ramifications of municipal-market stresses, the newspaper quoted the official as saying.” “The unit, which will […]
“(Reuters) – The People’s Bank of China (PBOC) is planning to ease restrictions now in place on foreign central banks and financial institutions trading in China’s interbank bond market, sources with direct knowledge of the situation told Reuters.” “The move, if implemented, would mark another incremental opening of China’s capitalmarkets, following an announcement on April 10 that Beijing would […]
“One of the unsettled questions from the financial crisis is whether the big banks have paid enough to cover the mortgage abuses they committed before the market collapsed.” “A settlement announced on Wednesday that involves Bank of America indicates that, in some cases, the banks could have been made to pay more than they have.” “Bank of […]
“Bank of America Corp’s (BAC.N) mortgage pain is lasting longer than expected, leading some investors to wonder if the massive expenses being incurred have become a recurring cost of doing business instead of being dismissed as one-time items.” “The bank on Wednesday posted $6 billion of litigation expenses for its first quarter, far exceeding the $3.7 billion […]
“New York Attorney General Eric Schneiderman sent subpoenas to six high-frequency trading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter.” “Chopper Trading LLC, Jump Trading LLC and Tower Research Capital LLC are among the firms, according to […]
“High-frequency traders in the European Union are set to face some of the toughest rules in the world, after legislators backed rules that they said would curb volatility and make markets safer.” The limits include standards meant to keep the price increment for securities from being too small, mandatory tests of trading algorithms and requirements […]
“In the insider trading case against SAC Capital Advisors, federal prosecutors have given a particularly nice gift to a former federal prosecutor, Bart M. Schwartz. Mr. Schwartz, who is now the chairman of the consulting firm Guidepost Solutions, was appointed SAC’s independent compliance consultant and is charged with assessing the firm’s future trading practices.” “The […]
“For all of the outrage kicked up by Michael Lewis’s depiction of fundamentally rigged securities exchanges in his book “Flash Boys,” there’s a giant obstacle standing in the way of punishing high-frequency traders or the exchanges that facilitate them: the blessing of federal regulators. As Dealbook’s Peter Henning wrote in his White Collar Crime Watch […]
“Bill Gross and Larry Fink manage a $3 trillion pile of bonds — an amount almost as big as Germany’s economy. Their firms, Pacific Investment Management Co. and BlackRock Inc. (BLK), doubled holdings since 2008, outpacing the market’s growth of 50 percent. “Some of the largest hedge-fund firms, including Bridgewater Associates LP and BlueCrest Capital […]
“Citigroup’s stock looks perfectly priced – for more mediocrity. “The bank’s $3.9 billion first-quarter net income was no disaster. And, unlike JPMorgan, Citi beat analysts’ estimates. Its bad bank, Citi Holdings, is no longer much of a drag. And the bank even managed to use a chunk of its substantial tax breaks and thus increase […]
“Over the last 26 years, BlackRock has become one of the biggest investment managers around, with more than $4 trillion under management. “With that much capital at its disposal, the firm plans to use its financial muscle to speak out for investors, its chief writes in the firm’s most recent annual report. “Laurence D. Fink, […]
“Credit Suisse Group AG Chief Executive Officer Brady Dougan could take a lesson from Zurich neighbor UBS AG as he seeks to boost his company’s stock: scale down the investment bank. “Shares of Credit Suisse, Switzerland’s second-largest bank, are valued lower than UBS’s, and the gap has widened since UBS decided in 2012 to exit […]
“A federal appeals court has overturned a disclosure requirement that public companies must post information about their use of minerals from Congo, where militias linked to atrocities have profited from mining minerals used in electronics, jewelry and other goods. “The appeals court says the requirement violates the free speech rights of companies that must inform […]
“Mary Jo White took over the Securities and Exchange Commission with a back-to-basics plan to toughen enforcement and clear a backlog of regulations aimed at the last financial crisis. “Now White and the SEC may be confronting the next crisis: claims that the stock market is rigged. Ending her first year as SEC chairman, White […]
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