The SEC finalized new rules that will give more transparency to asset-backed securities and was ready to vote on reforms for credit rating agencies.» Read More
"The SEC must protect investors in asset-backed securities just as it does investors in any other security," SEC Chair Mary Jo White said during a public meeting, at which the five-member commission voted on the two rules.
WASHINGTON— Federal regulators on Wednesday voted to require financial firms that sell securities backed by loans, like the kind that fueled the 2008 financial crisis, to give investors details on borrowers' credit records and income. The Securities and Exchange Commission adopted the rules for securities linked to mortgages and auto loans on a 5-0 vote.
WASHINGTON, Aug 27- The U.S. Securities and Exchange Commission on Wednesday, in a public vote, adopted final rules to reform credit rating agencies, which played a key role in the 2007-09 financial crisis. Two Republican Commissioners voted against the rule. For a story, please click on.
"The SEC must protect investors in asset-backed securities just as it does investors in any other security," SEC Chair Mary Jo White said in a statement. The newly required information includes the credit quality and the collateral and cash flows related to each asset, said the SEC.
NEW YORK, Aug 25- A New York broker went on trial on Monday over a U.S. securities regulator's claims he participated in a scheme designed by a Morgan Stanley employee to profit from the death of terminally ill patients through variable annuity sales.
Citigroup says it cannot sell investments in hedge funds and private-equity funds to clients after a deal with the SEC, according to the WSJ.
Aug 21- Citigroup Inc has been sending hedge fund firms letters informing them that it cannot sell investments in hedge funds and private-equity funds to clients after a deal with the U.S. Securities and Exchange Commission, the Wall Street Journal reported.
Representative Jeb Hensarling, who leads the House of Representatives' Financial Services Committee, said in the letter to SEC Chair Mary Jo White that the leaks raised questions about who attends closed agency meetings and hurt the SEC's ability to enforce securities laws.
Billionaire investor Carl Icahn revealed he owns an 8.5 percent stake in Hertz and plans to pressure the rental car company's management.
NEW YORK— Activist investor Carl Icahn has taken an 8.5 percent stake in Hertz, saying he plans to have talks with the rental car company and may seek representation on its board. In a filing with the Securities and Exchange Commission, Icahn said he wants to talk about accounting issues, operating problems and his lack of confidence in company management.
Aug 19- Southeastern Grocers LLC, which operates supermarket chains Winn-Dixie and BI-LO, said on Tuesday it would withdraw its plans for an initial public offering. The Jacksonville, Florida- based company filed with the U.S. Securities and Exchange Commission in September for an IPO of up to $500 million.
NEW YORK— GameStop Corp. said Tuesday that its CEO, Paul Raines, had surgery last week to remove a cancerous brain tumor. The prognosis for a full recovery is "very good," GameStop said in a filing with the Securities and Exchange Commission.
Community Health Systems said a group believed to be operating out of China attacked its hospitals, affecting 4.5 million patients. Re/code reports.
FINRA charged Wedbush Securities with having shoddy risk controls, a flaw that allowed traders to flood U.S. markets and execute manipulative trades.
Aug 15- U.S. regulators are investigating the auditor of Cynk Technology Corp, the social media company that was briefly worth more than $6 billion in June before its shares plummeted, the Wall Street Journal reported, citing people close to the probe.
Aug 14- U.S. securities regulators are looking at the hostile takeover bid made by billionaire investor William Ackman and Valeant Pharmaceuticals for Botox maker Allergan Inc, a person familiar with the matter said on Thursday.
The SEC said Toth called his financial advisor and arranged to buy 5,000 shares of O'Charley's after his client revealed the impending acquisition during a tax-planning meeting. Nash bought 10,000 shares, while Schlossberg tipped his business partner, Moshe Manoah, and the two of them jointly bought stock using an account held by Manoah's wife, the SEC said.
The New York- based firm, which ceased acting as a broker-dealer in April 2013, has agreed to pay $14 million to settle the charges, the SEC said in a statement. The SEC said on Thursday brokers at the firm defrauded customers by promising very low commission fees, but charging fees that in some cases were more than 1,000 percent greater than represented, the SEC said.
Aug 14- A hostile takeover bid by billionaire investor William Ackman and Valeant Pharmaceuticals International Inc to acquire Allergan Inc is being investigated by federal regulators for possible violations of securities laws, the Wall Street Journal reported, citing people familiar with the matter.
The Dow Jones is reporting the SEC is in early stages of investigating Valeant and Pershing Square's pursuit of Allergan. CNBC's Scott Wapner has the details.