Saturday, 20 September 2014
Last updated 15 hours ago
Nov 13 2006 | 5:28pm ET
Hedge funds and prime brokers got a stern talking-to from regulators today, and a warning to clean up their acts—or else.
At a hedge fund conference in New York, Securities and Exchange Commission enforcement chief Linda Thomsen said the agency will ratchet up the pressure on illegal trading and abusing clients’ trust with a flurry of lawsuits. “I expect to see activity in connection with both,” she said. “These days, the money is in hedge funds, so the potential for securities law violations is there because there is so much money there.”
Meanwhile, the New York Stock Exchange’s lead enforcer took aim at hedge funds’ potential accomplices, the giant investment banks that serve as prime brokers.
Susan Merrill told conferees that the Big Board expects banks that are part of an underwriting syndicate for secondary stock offerings will detect hedge funds selling a stock short, with plans to cover the short sale with shares to be purchased in the secondary offering.
“We do expect member firms to put that information together,” Merrill said. “There will be actions related to that if that practice doesn’t get cleaned up.”
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.