Wednesday, 1 October 2014
Last updated 4 hours ago
Nov 3 2011 | 9:18am ET
Merrill Lynch and Standard & Poor's may face civil charges over their sale of collateralized debt obligations allegedly structured on behalf of Magnetar Capital.
The Securities and Exchange Commission hopes to file the lawsuits in the next few months, the Financial Times reports, ending a probe that has already ensnared Citigroup, Goldman Sachs and JPMorgan Chase. All three banks settled the allegations.
But the SEC is still looking into a $1.5 billion CDO set up by Merrill Lynch, now part of Bank of America, for Magnetar, as well as another structured by Mizuho Financial Group and rated by S&P. The latter would be the first such case against a rating agency.
"It's fair to say we're not at the end," Kenneth Lench, head of structured and new products enforcement at the SEC, told the FT. "There will be a handful of additional cases, I believe, over the next several months."
Neither Magnetar nor any other hedge fund has been accused of any wrondoing in the CDO cases.
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...