Friday, 19 September 2014
Last updated 8 hours ago
May 3 2010 | 10:47am ET
The Deutsche Bank bond salesman at the center of a hedge fund insider-trading case did nothing wrong, his lawyer said during closing arguments.
The Securities and Exchange Commission, in its first-ever insider-trading case involving credit-default swaps, alleges that Jon-Paul Rorech illegally tipped off former Millennium Partners portfolio manager Renato Negrin about an upcoming bond offering from Dutch media company VNU Group. Negrin, also on trial in the case, is accused of making $1.2 million on the swaps he bought in 2006 after the VNU deal was announced.
But Rorech testified that he did not know that VNU CDS were restricted when he spoke with Negrin. His lawyer, Richard Strassberg, told the jury, “everything he knew he was allowed to share with customers.”
Negrin has also denied any wrongdoing, testifying that any information received from salesmen like Rorech “is assumed to be public.”
The legal teams for both men have also argued that the SEC has no jurisdiction over CDS. The defense says the contracts are not securities.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.