Saturday, 30 August 2014
Last updated 1 day ago
Jan 30 2012 | 2:05pm ET
Deutsche Bank is in hot water over allegedly allowing Paulson & Co. a hand in picking the mortgage-backed securities that went into a collateralized debt obligation.
The Securities and Exchange Commission is investigating the START CDO, the German magazine Der Speigel reports. The allegations are similar to those that Goldman Sachs paid $550 million to settle a year-and-a-half ago: that the bank allowed the hedge fund to pick the securities that went into the CDO and then failed to tell other investors that Paulson was shorting the CDO.
Deutsche Bank said it will investigate the possible SEC allegations and, if it disagrees with the regulator, will defend any enforcement action.
The SEC last year moved to put an end to the practice of hedge funds participating in CDO structuring, voting to approve new conflict of interest rules for asset-backed securities. The rule forbids banks from allowing third parties that had a hand in selecting the securities for an ABS to short the ABS.
The SEC investigated a number of CDO transactions on the Goldman-Paulson grounds, including several linked to Magnetar Capital. No hedge fund has been accused of any wrongdoing in the process.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...