Skip to main content

Player-Hating Securities And Exchange Commission Won't Let Broke Guy Put In An Offer For All Of AMR Corp

  • Author:
  • Updated:

Allen Weintraub is a convicted felon who's racked up his share of securities violations and, in 2007, filed for bankruptcy. He's also a man with a dream- several in fact- that last March, he went after. In short, Weintraub wanted to buy AMR Corp- all of it. Eastman Kodak Company, too. And unlike some people, who are all talk and not a lot of action, Weintraub set out to make his dreams a reality.

In the AMR case, Weintraub sent a letter March 29 to “Gerald Arpey” offering $9.75 per share of AMR stock, an offer worth about $3.25 billion. Gerard Arpey is chairman, president and chief executive of AMR. That followed Weintraub’s March 19 offer for all shares of Kodak for about $1.3 billion.

Apparently Weintraub initiative wasn't cool with the SEC, which filed a suit against him today, that Weintraub would characterize as bull shit typical of people trying to hold him down.

In the suit filed Tuesday in a federal district court in Florida, the SEC alleges that Allen Weintraub and his Sterling Global Holdings “have substantially no assets” and “lack the means to complete the tender offers.”

In its complaint, the SEC said Weintraub tried to obtain bank financing for his tender offers for Kodak and AMR, but banks turned him down...On April 26, Weintraub sent a follow-up letter to Arpey urging him to negotiate with him. “I won’t even address the personal comments, because in my opinion they are without merit,” Weintraub wrote.

Why can't people step back and give him room to work? If he says he'll pay, he'll pay. Fascists.

[Dallas News]


The Securities And Exchange Commission Requests A Little Credit Where Credit Is Due, Please!

Yesterday, the Wall Street Journal ran a front page story reporting that the Securities and Exchange Commission had "blown" the cover of whistleblower Peter C. Earle. The article claimed that Earle, a former employee of Pipeline Trading Systems turned government informant, had his identity "inadvertently" revealed through a "gaffe" on the part of an SEC lawyer, who showed a Pipeline exec "a notebook from the whistleblower filled with jottings about trades, calls and meetings." The executive was said to have recognized Earle's handwriting and told his colleagues, who had previously suspected but did not know for sure that "Pete's the whistleblower." The story was easy to believe because if you've been keeping up with the SEC over the last number of years, you know that this sound exactly like something they'd accidentally do. Except that whereas the regulator fully copped to, for example, missing Madoff while trying to access 385 times/day, it says that this accusation? Is bull shit. It did not "inadvertently" "blow" anyone. Here's its strongly worded letter to the Journal saying as much: The Securities and Exchange Commission in no way exposed Peter Earle as a whistleblower, and our use of his notebooks in an investigative deposition was neither "inadvertent" nor a "breach" or "gaffe" ("Source's Cover Blown by SEC," Page One, April 25). It was a deliberate decision, which SEC lawyer Daniel Walfish discussed in advance with his supervisor, who was present for the deposition in which the notebooks were exhibited. Nor did the fully authorized use of the notebooks in any way compromise Mr. Earle or the integrity of the SEC's investigation of the Pipeline Trading Systems matter. Although it was widely known among executives of Pipeline and Milstream Strategy Group that Mr. Earle had approached the SEC after he was terminated from Milstream—a fact volunteered by several witnesses and acknowledged by Mr. Earle long before any use of his notebooks—the SEC declined to confirm his identity and still treated his status as a cooperating witness as confidential. The SEC made sure to obtain all of the notes of the approximately six Milstream traders, and in the SEC's deposition of Gordon Henderson (the supervisor of Mr. Earle and the other traders), the SEC used other traders' notes along with those of Mr. Earle. The use of these traders' notes—highly relevant evidence prepared in the ordinary course of their work at Milstream—in no way revealed whether Mr. Earle or any other trader was or was not cooperating with the SEC. George S. Canellos Director New York Regional Office U.S. Securities and Exchange Commission New York SEC Did Not Blow Source's Cover [WSJ] Earlier: SEC Burns Whistleblower In The Most SEC Way Possible

Securities And Exchange Commission To Make A Couple Calls Re: Vikram Pandit's Breakup With Citi

The Securities and Exchange Commission has launched a probe into the messy departure of Vikram Pandit as chief executive of Citigroup and whether the board of directors of the big bank properly disclosed his ouster, the FOX Business Network has learned. One person familiar with the matter says the SEC’s inquiry is informal and has not reached the level of a full-blown investigation. But it is a sign the SEC is clearly interested in the circumstances surrounding Pandit’s official “resignation” from the big bank. Those details have been in dispute since the October 16 announcement. Both Pandit and Citigroup chairman Michael O’Neill have said in interviews and during conference calls with analysts that the decision was Pandit’s to leave the firm. [FBN, earlier]