Former Trader Is Found Liable In Fraud Case (DealBook)
“He was the one that didn’t get away,” one of the nine jurors, Beverly Rhetts, said after the verdict. “The decision-making was a slow and arduous process,” said Ms. Rhetts, a retired teacher who was juror No. 2. “We went over each item with a fine-tooth comb. We looked into the semantics and tried to understand them as best as we could.” “We never felt there was anything that was cut and dry,” she added. … Juror No. 9, Leonel Lopez, 27, who works in advertising, said, “I found Mr. Tourre’s testimony to be genuine and the defense’s case solid, but the evidence suggested that a number of S.E.C. violations had occurred.” As the verdict was read on Thursday, Mr. Tourre sat emotionless, briefly glancing at the jury before fixing his stare elsewhere. When the jury shuffled from the courtroom, few made eye contact with him. Minutes later, he departed the building, carrying a copy of “The History of the Decline and Fall of the Roman Empire” by Edward Gibbon.
Case Against SAC Is Aided by Hiring of Fired Trader (DealBook)
[Richard S.] Lee, who has pleaded guilty and is cooperating with investigators, proved crucial to the government’s case — not so much because of his illicit trading, but because of how he landed a job at SAC despite his earlier misstep. Mr. Lee’s interview process added to questions about SAC’s hiring practices and controls. His cooperation, as well as evidence suggesting that SAC recruited employees with sources inside publicly traded companies, provided ammunition for the government’s claim that SAC and its units permitted a “systemic” decade-long insider-trading scheme.
BofA faces potential mortgage-related civil charges (FT)
Bank of America is facing new legal troubles from US authorities, it disclosed on Thursday, including potential civil charges from the Department of Justice over securitisations of mortgages lent to wealthy borrowers. The bank has settled lawsuits over mortgages in the past year, helping to improve investor confidence that it is gradually escaping the legacy of the financial crisis when it wrote bad loans to borrowers who could not repay them. However, in a regulatory filing, BofA announced new threats and the development of existing cases. It said it had “been advised by the staff of the DoJ that it intends to file civil charges against Bank of America entities arising from one or two jumbo prime securitisations”.
Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees (Bloomberg)
Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New Jersey, to buy or sell as many interest-rate swaps as necessary to move the benchmark rate, known as ISDAfix, to a predetermined level, according to a person with knowledge of the matter. By rigging the measure, the banks stood to profit on separate derivatives trades they had with clients who were seeking to hedge against moves in interest rates.
Man Pays Settlement With 600,000 Quarters (WSJ)
On Wednesday, [Dr. Roger Herrin] delivered the money to the other parties, complying with a court-ordered settlement. But to their astonishment, he paid $150,000 of it in quarters. An armored Brink’s truck drove 150 bags of loose quarters from the Federal Reserve Bank of St. Louis to a Marion, Ill., bank. The bags were then piled on flatbed trucks that the doctor had borrowed from a friend. The trucks then rumbled through a busy downtown square, parked outside of two law firms, where the bags were dumped in the lobbies. “We blocked traffic,” Dr. Herrin told Law Blog. The 76-year-old doctor said his coin trick — reported by the Southern Illinoisan newspaper — was a “protest against the ruling.”
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