Saturday, 20 December 2014
Last updated 1 day ago
Sep 28 2010 | 12:19pm ET
A Jersey City, N.J., hedge fund under Securities and Exchange Commission investigation received more than $230 million in federal loans as part of a government bailout program.
Yorkville Advisors has been part of the Term Asset-Backed Securities Loan Facility Program since last year. Under TALF, the Federal Reserve Bank of New York has up to $1 billion to lend as part of an effort to inject liquidity into the ABS market.
Yorkville received some $233 million of that financing, using it to buy $253 million in securities last year for its flagship, YA Global Investments. The TALF deals were made via a subsidiary of the fund, New Earthshell Corp., and placed with a special-purpose entity called YA TALF Holdings, Forbes reports. The hedge fund still owes the Fed $162 million.
Yorkville said it “made the application to participate in the TALF program which included disclosure of participating funds, the interposed entities as well as providing all requested follow-up information. Yorkville and the participating entities were approved by the Federal Reserve Bank of NY as TALF-eligible participants.”
Until now, few of the hedge funds and other firms participating in TALF have been made public. That will change by the end of this year under a new law requiring disclosure of the program’s participants.
Last month, Yorkville told investors that the SEC had sought—and that it had provided—some information about the $864 million hedge fund. It did not say what the regulator had asked for.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.