Tuesday, 23 September 2014
Last updated 59 min ago
Jun 13 2011 | 12:15pm ET
Goldman Sachs executive Fabrice Tourre, the only individual accused in the collateralized debt obligation case that cost Goldman a $550 million settlement last year, will have to defend himself against a slimmed-down Securities and Exchange Commission lawsuit, a judge has ruled.
U.S. District Judge Barbara Jones ruled that, "by virtue of alleging Tourre was principally responsible for" ABACUS-AC-1, the $1 billion CDO at the center of the lawsuit, "and its marketing materials, the SEC sufficiently alleges that Tourre" broke the law and "knowingly, recklessly or negligently" misrepresented the CDO to clients. But she threw out several claims in the wake of a U.S. Supreme Court ruling last year denying U.S. legal protection to foreign investors who buy securities abroad.
The SEC alleges that ABACUS was structured and marketed on behalf of hedge fund Paulson & Co., which has not been accused of any wrongdoing. Goldman and Tourre were accused of misleading investors about Paulson's role—the regulator claims that Paulson had a hand in selecting the securities that went into the CDO, which it would make a killing shorting.
The mixed ruling allowed both sides to claim victory, with both saying they were "pleased."
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 McKitich, CIO of Petty 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…
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.