Criminal Probe Looks Into Goldman Trading (WSJ)
The investigation from the Manhattan U.S. Attorney's Office, which is at a preliminary stage, stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.
Buffett Set To Fire On Goldman (WSJ)
Berkshire shareholders heading to Omaha, Neb., this weekend may soon get a view into Mr. Buffett's thinking. "I expect to get multiple questions about Goldman and I'll give extensive and complete replies," Buffett said in an interview Thursday. Charlie Munger, Mr. Buffett's longtime business partner at Berkshire's helm who shares the stage with him at the meeting, will likely have some choice words for Wall Street. "They were very competitive in maximizing profits in a competitive industry that was permitted to operate like a gambling casino," Mr. Munger said. "The whole damn industry lost its moral moorings."
Moore Capital Settles With CFTC For $25M (HFN)
The CFTC alleged that from November 2007 through May 2008, a former Moore Capital portfolio manager engaged in a practice called “banging the close,” meaning he built up a substantial position toward the end of the trading day and then offset it. As part of the settlement, Moore Capital won’t be able to trade in the futures and options within 15 minutes of and during the closing period for platinum and palladium.
Think Blankfein Will Resign? Want To Bet? (NYT)
When the wagering began on Tuesday morning, as Fabrice P. Tourre and other more junior Goldman executives defended their conduct before the Senate Permanent Subcommittee on Investigations, 55 percent were betting on a Blankfein resignation. By Wednesday afternoon, that figure was 45 percent. Mr. Blankfein’s stock continued to rally on Thursday, with expectations of a resignation falling to just 20 percent. The likelihood of a settlement, however, rose to 55 percent from 49 percent.
Papandreou Says Greek ‘Survival’ at Stake in Aid Negotiations (Bloomberg)
“Now, today, immediately, what is at stake is the survival of the nation,” Papandreou said in parliament in Athens today. “This is the ‘red line.’” He said talks with the EU and International Monetary Fund were “tough,” with his government resisting “not in the street with rocks, but in negotiations.”
Hedge Funds Summoned by EU Commission in Probe of High-Frequency Trading (Bloomberg)
The European Commission, the EU’s executive arm, said it’s summoning hedge funds and banks “in the coming months” for fact-finding talks on the practice, as it considers stricter rules on market abuse due before the end of the year. “We’re looking into high-frequency trading as part of the review of the Market Abuse Directive,” Chantal Hughes, a spokeswoman for Financial Services Commissioner Michel Barnier, said in an e-mail. “We want to make sure that the review captures technological developments.”