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After a fresh round of insider trading arrests and news conferences, hedge fund giant SAC Capital is once again in the spotlight.
Four additional people were criminally charged today in an ever widening case of insider trading.
An updated civil complaint released today by the SEC provides the best overview: "This case involves insider trading by ten individuals and one investment adviser entity, all of whom are consultants, employees, or clients of the so-called 'expert network' firm, Primary Global Research LLC [PGR]"
Here's the goods.
Irish banks need another 50 billion euro to clean up their balance sheets, according to Anglo Irish Bank Chairman Alan Duke .
What makes the 50 billion euro number so staggering is this: The additional capital number just named by Dukes exceeds the total 46 billion euros that banks have already received.
An interesting BBM exchange between Samir Barai and Jason Pflaum on page 26 of the complaint.
Late in the night of november 19, 2010, after Pflaum had already begun to cooperate with the Government in its investigation, BARAI and Pflaum exchanged a series of BBM communications regarding the article published in the Wall Street journal. In the BBM communications, BARAI stated that the article said that "key parts of the probes are at a late stage" and that a "Federal Grand Jury had heard evidence." BARAI further stated that he read the "article 10x [meaning, ten times]." BARAI then summarizerd the Reuters article quoted in Paragraph 49 above, which he reviewed:
- So another reuters article
- Last two weeks
- Fbi had approached HF [Hedge Fund] traders over past 2 weeks
- And number of traders contacted lawyers
- Problem is
- This scope is said to focus on the use of so-called expert network firms
- Concern for years that some experts may be passing out confi [meaning, confidential] info about to go public cos [meaning, companies] to traders....
- [The Firm] was only one named!!!!
BARAI then concluded the BBM communication with the following instruction: "Delete ur bbm chatr" [meaning, that Pflaum should delete his BBM communication with BARAI].
Sounds a little like panic if you ask me.
Far more interesting than the details of Moody Analytics chief economist Mark Zandi’s proposal to rework the mortgage market are the meager gains he thinks it would obtain.
Zandi has a proposal to scrap Fannie Mae and Freddie Mac in favor of ten new companies that would guarantee mortgages with an explicit government guarantee.
He’s got all sorts of arguments about why this hybrid public-private system would be better than either a fully public or a fully private model. But look at what he thinks the system would achieve.
Federal prosecutors are announcing insider trading charges against four more hedge fund employees at 12:00 p.m. today.
But what's more interesting is this: Three of the four are hedge fund managers, which definitely increases the drama quotient. \(The other employee is an analyst.\)
The surging power of activist investors is bolstered by a growing ally: public pensions and other big institutions.
Crude oil futures fell sharply, signaling traders that the selling is not over.
The Fed gave banks more time to meet a provision in the Volcker rule that bans them from betting with their own money through investments in risky hedge and private equity funds.