Sunday, 21 September 2014
Last updated 1 day ago
May 19 2010 | 10:42am ET
The Securities and Exchange Commission is bringing out the big guns in its battle with Goldman Sachs.
The regulator’s deputy director of enforcement, Lorin Reisner, has joined its team in the case. The SEC accuses Goldman of misleading investors in a collateralized debt obligation that it allegedly structured and marketed on behalf of hedge fund Paulson & Co.
Reisner filed a “notice of appearance” in Manhattan federal court, saying he will participate in the case.
According to the SEC, Paulson played a role in selecting the residential mortgage-backed securities that went into the CDO, called ABACAS-2007-AC1, and then shorted the vehicle, buying credit default swaps from Goldman itself. But Goldman failed to inform the investors in the CDO, the SEC alleges.
Goldman has denied any wrongdoing, although it is reportedly seeking to settle the charges. Paulson has not been accused of any wrongdoing.
Reisner joined the SEC from law firm Debevoise & Plimpton. He spent four years as an assistant U.S. attorney in New York in the early 1990s.
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.