Tags: insider-trading, SAC Capital, SEC, settlements, Steve Cohen
Over the past year or so, Steve Cohen has had to swallow several bitter pills in order to continue doing what he loves– trading stocks– and not further incite the Securities and Exchange Commission, the Justice Department, and Preet Bharara. He’s written a check for over 600 million dollars and another one for $1.2 billion. He’s returned all investor money to people not related to him by blood or marriage. He’s said good-bye to friends. Most recently, he made the ultimate sacrifice when he agreed to change the name of the firm1 from his initials to Point72 Asset Management, rendering a walk-in closet full of SAC Capital fleeces utterly useless.
And although the sight of a distraught Cohen fighting with his lieutenants over the name change, of him scooping up a pile of fleeces and shouting “What the hell am I supposed to do with these?!” before collapsing atop them and whispering, “Alright…alright,” of his President and GC and CFO standing awkwardly around him as he buried his face in the zip-ups and vests before sending everyone away and letting him be alone with them, of a single tear rolling down his face as he slowly traced the stitched on ‘S’ and then the ‘A’ and finally the ‘C’ should have been enough… Read more »
Tags: Bank of America, forever crisis, Morgan Stanley, SEC
Or at the Justice Department or CFTC or FCA or SFO. Read more »
Tags: check yourselves, flowers, SEC, Unions, Valentine's Day
I don’t know what it’s like at your office, but at the Securities and Exchange Commission, Valentine’s Day is a big deal. Staffers frequently beat suitors off with a stick and on February 14, the deliveries of candy, chocolates, flower arrangements, and edible undies do not stop. So when workers were notified just days before the big day that moving forward, such shipments were banned, there was no way they were going to take the news lying down. Read more »
Tags: all laws are suspended as of midnight tonight, government shutdown, Mamma.com, Mark Cuban, SEC, taxonomies of insider trading
Perhaps it is not the most important insider-trading trial of all time. But today’s jury selection in SEC v. Mark Cuban might mark the end of the beginning of what seems like the longest insider-trading case of all time. And, in spite of the reputation of the chief protagonist (or antagonist, depending on your point of view and whether or not you are a fan of Dallas-based sports teams), it’s not likely to be a particularly entertaining insider-trading trial. Read more »
Tags: CFTC, dogs/homework, Exchanges, Gary Gensler, glitches, SEC
Luckily, Robert Greifeld was able to solve that problem faster than the problem that led to the little get-together.
SEC officials on Thursday told exchanges to work with other market players to come up with “comprehensive action plans” to ensure that the data feeds are resilient, and to ensure the soundness of other “critical infrastructure systems,” according to an SEC statement.
Thursday’s SEC meeting, attended by top executives from exchange operators Nasdaq, NYSE Euronext, BATS Global Markets Inc., Direct Edge Holdings LLC, and others, was marked by one snafu. Nasdaq Chief Executive Robert Greifeld was 40 minutes late due to transportation problems, according to people who attended.
And lest you thought that (slowly outgoing) CFTC Chief Gary Gensler was going to let Mary Jo have all the fun, think again. Read more »
Tags: fat fingers, FERC, Goldman Sachs, Investigations, JPMorgan, SEC
Half of today’s financial news stories are about how some government enforcement agency is looking into something you already knew about. This is very boring for me! Remember when Goldman lost a bunch of money by fat-fingering some options trades?1 That still happened. Remember how JPMorgan did some naughty things with California electricity markets? Those historical circumstances continue to obtain. Remember the Whale? Still a thing.
You could wonder about the substance of some of these investigations. JPMorgan’s electric boogaloo, while intensely naughty, also seems pretty clearly to have followed FERC/ISO rules to the letter, so it’s hard to imagine charging anyone with a crime, as the FBI is apparently contemplating.2 And while I don’t know much about the SEC rules re: electronic options trading, the actual thing that Goldman did was sell options really cheaply, and it would be pretty weird if there were a rule against that, so I don’t know where the SEC is going with its enforcement investigation.3 (The Whale, I’ll give you, that stuff seems bad.) But basically, yeah, sure: bad things happened, rules might have been violated, market safeguards were shown to be less robust than had previously been thought, it is altogether fitting and proper that someone look into it. Or a lot of someones I guess.
Still the stories carry a whiff of looking for the keys under the lamppost: Read more »
Tags: Chicago Stock Exchange, SEC, technology is hard
Technological ineptitude has kept some civil-servants at the SEC pretty busy this year. And entertained: Without any big-game stock exchanges screwing up lately, they’ll bide their time with one that hosts a whopping 0.4% of all U.S. stock trading. Read more »