A New York judge on Friday rejected Barclays Plc’s effort to dismiss state Attorney General Eric Schneiderman’s lawsuit accusing it of defrauding clients about high-speed trading in its private “dark pool” trading platform.
Justice Shirley Werner Kornreich of the State Supreme Court in Manhattan said it was premature to dismiss Schneiderman’s claim under the state’s Martin Act, a powerful anti-fraud law.
“Traders are entitled to rely on material representations banks make about their dark pools,” the judge wrote. “If such representations are untrue, the integrity of dark pools will be compromised and investor confidence in them will be shaken.”
But the judge said Schneiderman still must show enough specifics about Barclays’ dark pool to demonstrate the bank lied to clients and investors.
A federal judge on Friday sentenced a former Charlotte-based Wells Fargo banker and three others for their role in an insider trading ring that netted the participants at least $11 million.
In the last of the four hearings, U.S. District Judge Robert Conrad sentenced John Femenia, who worked for Wells in Charlotte and New York, to five years in prison for his role in tipping off other defendants about impending deals.
Earlier, Conrad handed the longest sentence – 10 years in prison – to Shawn Hegedus, a high school friend of Femenia who acted on his tips and who fled to Cuba after the FBI first approached Femenia. Danielle Laurenti, Hegedus’ wife, was sentenced to the time she has served in prison – about 19 months – with prosecutors citing her cooperation in the case.
A fourth defendant, Matthew Musante, who prosecutors said also received tips from Femenia, received 3 1/2 years.
As The Buenos Aires Herald reports,
Federal Prosecutor Gerardo Pollicita has requested to investigate President Cristina Fernández de Kirchner and Foreign Minister Héctor Timerman in a case involving an alleged cover-up of Iran’s role in the 1994 AMIA bombing.
Giving a green light to a complaint first filed by now later AMIA special prosecutor Alberto Nisman, Pollicita presented the report before Judge Daniel Rafefas.
Ruling Victory Front (FpV) lawmaker Andrés Larroque, social leader Luis D’Elía, head of the political group Quebracho Fernando Esteche, ex judge Héctor Yrimia and Allan Bogado have been also charged.
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Some color on the warrant from Clarin.com (via Google Translate)
On folio 65 reads the title “Order of arrest and banned from leaving the country” .
And at page 67 the prosecutor asks “Mr. Justice” available “the CRISTINA FERNANDEZ DE KIRCHNER ELISABET, Héctor Marcos Timerman, of ANDREW LARROQUE (prior processes impeachment, removal or impeachment, as appropriate, under of their conditions of President’s Office, Minister of Foreign Affairs and National Deputy -arts. 53, 59, 68, 69 and 70 of the Constitution) “ .
And then ordered “the immediate arrest of LUIS ANGEL D’Elia, JORGE ALEJANDRO KHALIL, HECTOR LUIS YRIMIA, FERNANDO esteche and the man known as ‘Allan’, once it is properly identified” .
Nisman gave more information on the latter accused: “… according to the evidence obtained so far, could be Ramón ‘Allan’ Hector Bogado” , who was linked to the Ministry of Intelligence.
The draft complaint fiscal gives several indications that his accusations against the President was not written at the last moment, as the government tries to install: it is dated, for example, “June 2014”.
In the letter which appeared in the household trash, Nisman alert several times about the pressure that could put the accused on the Judiciary.
The prosecutor had advised the judge in this version of your complaint should “exercise extreme precautions” to prevent “maneuvers or stratagems” of the investigation, which described as “affected legal subjects” with a “total lack of scruples” .
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Interesting this bank CEO has been indicted for fraud and not the big bank CEOs or board of directors!
WASHINGTON –Former Tifton, Ga., bank president Gary Patton Hall Jr. has been indicted by a federal grand jury on six counts of bank fraud and one count of major fraud against the United States, federal officials have announced.
#Hall, 49, was charged Thursday for his role in a bank fraud scheme in which he is accused having hidden underperforming and at-risk loans from the bank and the Federal Deposit Insurance Corporation (FDIC), Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia, jointly announced.
#Hall was indicted Thursday.
#According to allegations in the indictment, Hall was the president/CEO of Tifton Banking Company from August 2005 until June 2010. During that time, prosecutors allege, Hall was engaged in a long running scheme to mislead the bank and its loan committee about loans the bank made to local people and businesses.
#As part of the scheme, Hall allegedly hid past-due loans from the FDIC and the Tifton Banking loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to the bank and others.
Posted in Uncategorized
Tagged DOJ, FDIC
Sometimes you chase your losing money, and sometimes you know the worm will turn. Bill Ackman lost big on the GSEs last year, but he thinks 2015 is the year for Fannie Mae and Freddie Mac.
CNBC has the story:
Hedge fund mogul Bill Ackman has extremely high conviction on what was a losing trade for him last year: the stock of housing giants Fannie Mae and Freddie Mac.
“It’s the most interesting risk-reward that I’m aware of in the capital markets right now,” Ackman said Thursday at the Harbor Investment Conference in New York, a charity event he organized.
Ackman positions in both stocks were some of the few losers in his portfolio last year.
Fannie Mae and Freddie Mac share prices declined 32 percent and 29 percent, respectively, in 2014.
Ackman recommended owning common stock over preferred shares.
He said Congress would eventually stop taking all profits from Fannie and Freddie and let them recapitalize through private markets.
On January 21, 2015, the US Securities and Exchange Commission brought charges for the very first time against a major rating agency, sanctioning Standard & Poor’s Rating Services (S&P) for making misrepresentations and failing to maintain accurate records and controls concerning its rating of certain commercial and residential mortgage- backed securities (CMBS and RMBS). Those sanctions include a one-year ban from rating any new issue US conduit/fusion CMBS transactions and $77 million in payments to the SEC and to the New York State and Massachusetts attorneys general.
S&P’s Rating of Conduit/Fusion CMBS
Beginning in 2009, S&P issued new criteria for rating conduit/fusion CMBS transactions (i.e., CMBS transactions involving a pool of multiple loans that are diversified by both property type and geography). Specifically, S&P used the debt service coverage ratio (DSCR) — a property’s annual net operating income divided by the annual mortgage debt service — to estimate whether the underlying mortgage loans would default during their term. S&P then used that estimate to determine the amount of credit enhancement it would require to achieve each rating level.
Posted in Uncategorized
Tagged MBS, S&P