SAC Capital: When The Feds Came Knocking
Early on Friday March 29, federal agents arrested the portfolio manager of SAC, the largest hedge fund in the country. Will SAC Capital founder Steve Cohen, who just enjoyed a week of retail therapy which saw him snap up mansions and Picassos, be next to see the Feds come knocking? Here’s a timeline of events that have put SAC Capital at the center of an insider trading scandal.
Cyprus Says Threat Contained, No Plan to Leave Euro
The president of Cyprus said
on Friday the risk of bankruptcy had been contained and the
country had no intention of leaving the euro, in a speech laden
with criticism of Europe's currency union for "experimenting"
with the island's fate.
More Trouble for Cohen's SAC Capital as Steinberg Indicted in NY
U.S. prosecutors on Friday charged
Michael Steinberg, a veteran portfolio manager with Steven A.
Cohen's $15 billion hedge fund, with engaging in insider trading
in two technology stocks, the most senior SAC Capital Advisors
employee to be charged in the government's long-running probe.
Investors Head Back to Safety of Bonds — Poll
Global investors grew more cautious this month, reacting to the crisis in Cyprus by adding to safe-haven bond positions, though cash buffers fell to a two-year low, Reuters monthly poll of asset managers showed on Thursday.
Dark Pools Open Up About Surveillance Methods
Brokers operating dark pools have come out with more sophisticated methods for preventing trades at bad prices and profiling client behavior — both in response to buy side concerns and regulatory scrutiny.
Canada's Top Six Banks to Get Capital Surcharge as of 2016
Canada's banking watchdog said
on Tuesday it sees the country's six largest banks as being of
systemic importance to the domestic economy and that it will
make them keep 1 percent more capital on hand starting January
2016 to protect them from financial disruption.
JP Morgan and Heuristics – Lessons from the Whale
JP Morgan's decisions in handling the London Whale incident can be traced to a series of cognitive biases and limitations, writes Andrew Waxman, who analyzes bank executives' responses based on the work of psychologist Daniel Kahneman.
Ten Things Compliance Officers Need To Do In 2013
Last year financial firms put an almost unprecedented focus on risk, control and compliance. That trend looks set to continue as organizations deal with the fall-out of regulatory change, major fines, and more.
Columbia University Professor Analyzes HFT
Based on what it calls 'the first meta-analysis of HFT,' Columbia Business School Professor Charles Jones finds that high frequency trading benefits liquidity and lowers trading costs, echoing other academic studies.
Raj Rajaratnam Brother Charged with Insider Trading
Raj Rajaratnam's younger
brother was indicted on charges of conspiring in the
insider-trading scheme for which the founder of the Galleon
Group hedge fund was convicted nearly two years ago, U.S.
prosecutors announced on Thursday.
New Columbia Business School HFT Paper Is Disappointing
The study by Charles Jones cite the usual benefits of HFT: enhanced liquidity and more efficient markets. But what about the conflicts of interest and order types designed specifically for the benefit of high frequency players?
Regulator Finds Flaws in Deutsche Bank's Libor Supervision
German markets watchdog
Bafin is set to tell Deutsche Bank of "organisational
flaws" in how it supervised its contribution to the setting of
inter-bank lending rates at the heart of the international
rate-rigging scandal, sources familiar with the watchdog's
HFT: A Clear and Present Danger?
In January 2013, Congressman Edward J Markey declared that HFT represents a clear and present danger and should be curtailed immediately. Is he right?
Funding the Bad Guys – Winning the AML Battle
Successfully preventing terrorist networks and drug traffickers from utilizing the financial system to launder money will require greater cooperation between banks and law enforcement.
Senate Banking Panel Approves Obama's SEC, CFPB Choices
A U.S. Senate panel voted
to move forward two of President Barack Obama's choices to lead
financial regulatory agencies, but his pick of Richard Cordray
to lead the new consumer bureau likely still faces a tough path
to final confirmation.
Ratings Agencies Come Under Fire from EU Watchdog
The European Union's markets
watchdog has criticised the world's top three credit ratings
agencies for a lack of transparency over how they evaluate banks
and demanded more robust internal reviews of their methods.
U.S. Top Court Won't Hear Goldman Class Action Appeal
Goldman Sachs Group Inc
suffered a defeat on Monday as the U.S. Supreme Court let
stand a decision forcing it to defend against a class action
lawsuit claiming it misled investors about the risks associated
with mortgage securities.
What Will Mary Jo White’s SEC Look Like?
President Obama's choice to run the SEC has her strengths and weaknesses - but what exactly will Mary Jo White's stamp be on the embattled financial regulatory agency?
Bloomberg Delivers Ultimatum to CFTC on Swaps Trading
An attorney representing Bloomberg LP threatened to file a lawsuit against the U.S. regulator for unfair margin requirements on swaps trading rules, which give a competitive edge to exchange platforms over SEFs.
Sequester Chokes SEC, Regulator Funds
As the market burns up the DOW, the SEC and other regulators will see their budgets slashed during the sequester. What happens if the government shuts down?
SEC Nominee White Says Her Legal Work No Barrier to Job
Mary Jo White, President
Barack Obama's choice to lead the U.S. Securities and Exchange
Commission, told lawmakers considering her candidacy that her
past legal work for big Wall Street clients would not impede her
job at the agency.
New Opportunities For Hedge Funds
The door has opened for hedge fund admins — who, with few exceptions, continue to enjoy a view of the fund’s entire investment book — to offer new services traditionally provided by their prime broker.