Wednesday, 1 October 2014
Last updated 36 min ago
Mar 17 2011 | 1:37pm ET
The Securities and Exchange Commission's administrative action against former McKinsey & Co. chief and alleged Raj Rajaratnam tipster Rajat Gupta is "bizarre," a federal judge said yesterday.
U.S. District Judge Jed Rakoff, not known for pulling his punches, asked SEC lawyer Valerie Szczepanik about Gupta's case at a hearing in the SEC's case against former Galleon Group trader Adam Smith, who has pleaded guilty and is cooperating with prosecutors.
"I don't understand why Mr. Gupta is the subject of an administrative proceeding before the SEC while everyone else is the subject of a proceeding before a district court judge," Rakoff said.
The decision to bring an administrative rather than an enforcement action in the Gupta case "was made by other above me," Szczepanik told Rakoff.
"What you said was not an answer to my question," the judge replied. "On its face, it's sort of bizarre, but there it is."
The hearing was the result of an SEC request to delay Smith's case until after Rajaratnam's ongoing criminal trial is over. Rakoff is also overseeing the SEC's lawsuit against Rajaratnam and has reluctantly agreed to delay that trial until after the criminal trial ends.
Rakoff said at the hearing that both sides in the Smith case have said they are in settlement talks.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...