prosecutors

Wall Street firms dodge a bullet

Jim Kim — Sun, 05 Oct 2008 09:42:49 -0400

The Washington Post reports that the Justice Department has decided it will not seek indictments against Wall Street firms, concentrating instead on individuals. So it seems unlikely that we'll see another Arthur Andersen, which was (in)famously dealt the corporate death sentence six years ago in the wake of the Enron scandal. But this certainly doesn't mean prosecutors are going easy. If anything, individuals ought to be more nervous. There will be more resources to take a look at such activity as false and misleading statements and insider dealing. The FBI has opened investigations at no fewer than 26 companies. You can bet that there will be some indictments. You can't have an implosion of this magnitude and not have indictments.

For more:
- here's the article

More Bear Stearns charges coming?

Jim Kim — Mon, 30 Jun 2008 11:35:57 -0400

NPR reports that there could be new indictments against Ralph Cioffi and Matthew Tannin, the two Bear Stearns execs who have already been charged with misleading investors. The new charges reportedly would deal with the funds relationship with the banks that provided credit and various guarantees. NPR notes that prosecutors already have spoken with Barclays, Merrill Lynch and Bank of America. Barclays sued Bear Stearns, though I'm not sure where that stands. Clearly, the government would like to make an example of these two men. There are a lot of probes going on. My sense is we're more likely to see more states take action sooner. The feds will pick their cases carefully. Consider the case by Massachusetts regulators against UBS over its auction-rate securities sales practices.

For more,
- here's the article

Prosecutorial floodgates about to open?

Jim Kim — Fri, 20 Jun 2008 07:22:43 -0400

The arrests of Bear Stearns portfolio manager Ralph Cioffi and hedge fund exec Matthew Tanin stand as an omen of sorts. We've said before that prosecutorial activity always follows upheaval and mayhem, and the on-going credit crunch qualifies. Of course, it was those two now infamous Bear Stearns hedge funds with the long names that started it all. The issue is whether the arrested former managers deliberately lied to investors, saying that they were comfortable with the assets even as they knew they were tanking. Prosecutors say Cioffi moved $2 million of his own money out of one fund while he still had a rosy face on for customers. As usual, email will figure prominently. This seems to be part of a larger probe of the whole credit crunch. There may be others in similar straights. You have to wonder if we will see more criminal indictments. We don't how high up the food chain the government wants to go. You can bet they've gotten an earful from investors who felt wronged. Hang on.

For more:
- here's an AP article

Quattrone lands a big client

Mon, 14 Apr 2008 06:59:58 -0400

Frank Quattrone, who outlasted prosecutors and lived for a second act in the financial services industry, has landed a big-name client: Google. The New York Times reports that Quattrone is aiding Eric Schmidt, CEO of the search giant, as it formulates a strategy amid the Microsoft-Yahoo derby. Quattrone's new Qatalyst Group looks to be an instant power in the industry, and business will not be hard to find. Schmidt and Quattrone have a long history together. It increasingly appears that Google will be drawn into the battle, which is a gravy train for top bankers.

For more:
- here's the New York Times article

ALSO NOTED: Bank of America to keep dividend?; Soros: Worst crisis in 60 years; and much more...

Thu, 24 Jan 2008 06:59:50 -0500

Company News:
> Soros: Worst crisis in 60 years. Article
> Piper Jaffray beats estimates. Article
> Jefferies results in line with expectations. Article
> Bank of America to keep dividend? Article
> SunTrust earnings tank. Article

Industry News:
> Buffett buys 3 percent stake in Swiss Re. Article
> Fed to repeat mistakes. Article

Regulatory News:
> Jana Partners' stake in CNET okayed. Article
> Prosecutors in S. Korea delay Lone Star decision. Article
> Court declines to hear case of Enron investor. Article

And Finally... Online golf killing your productivity? Article

ALSO NOTED: Oppenheimer completes most of deal to buy CIBC assets; Derivatives exchange seeks more investors; and much more...

Tue, 15 Jan 2008 06:59:50 -0500

Company News:
> Derivatives exchange seeks more investors. Article
> Goldman Sachs to benefit from turmoil? Article
> Oppenheimer completes most of deal to buy CIBC assets. Article
> Nymex volume rises 16 percent. Article
> M&T Bank earnings plunge. Article

Industry News:
> Who says deals are dead: Bain to buy child-care services provider. Article
> Analysts trim Capital One outlook. Article
> Thomson-Reuters deal to close in 2Q. Article

Regulatory News:
> Citigroup's China sovereign wealth investment in doubt. Article
> S. Korean prosecutors question Lone Star chief. Article
> SEC looking at Merrill traders. Article

And Finally... Demand heavy for life coaches. Article

ALSO NOTED: Big win for Morgan Stanley in Florida case vs. Perelman; Probe of salacious bias charges at SAC nearing close; and

Thu, 13 Dec 2007 06:59:50 -0500

Company News:
> Big win for Morgan Stanley in Florida case vs. Perelman. Article
> More on WaMu blues. Article
> More on WaMu plans to sell $3 billion in convertibles. Article
> Penta Asia hedge fund thrives. Article
> More SAC alums struggle. Article

Industry News:
> Wall Street wanted bigger rate cut. Article
> PR alert: Business Week reorgs. Article
> New York state tightens contol over pensions. Article

Regulatory News:
> Central bankers coordinate on credit crisis. Article
> IL prosecutors subpoena Countrywide. Article
> Probe of salacious bias charges at SAC nearing close. Article
> Bank created new lending facility to help strapped banks. Article
> SEC to look at international accounting standards. Article

And Finally... America's Next Top Model...CEO? Video Spoof

ALSO NOTED: Cerberus takes control of Chrysler; S&P to downgrade Bear Stearns credit?; and much more...

Mon, 06 Aug 2007 06:59:50 -0400

Company News:
> Cerberus takes control of Chrysler. Article
> S&P to downgrade Bear Stearns credit? Article
> Goldman Sachs gives $5 million to nonprofit. Article

Industry News:
> What's next for Murdoch? Article
> Millionaires don't feel like themselves these days. Article
> Cerberus taps Nardelli to run Chrysler. Article
> Hedge fund to decide fate of ABN? Article

Regulatory News:
> Prosecutors looking at IKB collapse. Article
> Commentary: Where did the deals go? Article

And Finally... One reason to give business cards to new hires. Article

ALSO NOTED: Apollo to list shares on Goldman Sachs system; ABN Amro studying both bids; and much more...

Wed, 18 Jul 2007 20:01:30 -0400

Company News:
> Knight Capital earnings drop 20 percent. Article
> KKR mulling bid for Macy's? Article
> ABN Amro studying both bids. Article
> Apollo to list shares on Goldman Sachs system. Article
> Fifth Third earnings decline. Article

Industry News:
> Subprime woes weigh on financial stocks. Article
> The fourth annual Hedge Fund Regatta. Article

Regulatory News:
> Prosecutors want $52 million from Nacchio. Article

And Finally... Here's a job interview survival kit.

The big losers in Bear Stearns hedge fund fiasco?

Wed, 11 Jul 2007 20:01:36 -0400

Business Week Online notes some of the losers in the near-meltdown of the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage fund. Heading the list: The colorful and controversial Jeffrey Epstein's Financial Trust Company. A hedge fund managed by BNP Paribas is another beneficial owner. There are countless others with smaller stakes perhaps. For Epstein, this is a tricky situation. He was once a former Bear Stearns trader that turned himself into a hedge fund guy. He probably thought he had an in with his former company. This is one more piece of bad publicity. Last July, prosecutors in Florida charged him with solicitation at his Palm Beach (Fla.) mansion--made headlines of course. Bad news has a way of cascading.

For more on Epstein:
- here's the article from Business Week Online