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Feb 7, 2013

Prosecutors zero in on SAC Capital insider Steinberg

NEW YORK (Reuters) – Prosecutors are nearing a decision on whether to pursue criminal charges against SAC Capital Advisors portfolio manager Michael Steinberg related to an insider trading investigation involving shares of Dell Inc, according to two people familiar with the matter.

Steinberg, 40, a technology portfolio manager with SAC Capital’s Sigma Capital division, previously had been named by prosecutors as an unindicted co-conspirator in a criminal prosecution involving two other recently convicted hedge fund traders, Todd Newman and Anthony Chiasson, who had also traded Dell shares.

Feb 6, 2013

U.S. prosecutors zero in on SAC Capital insider Steinberg

NEW YORK (Reuters) – U.S. prosecutors are nearing a decision on whether to pursue criminal charges against SAC Capital Advisors portfolio manager Michael Steinberg related to an insider trading investigation involving shares of Dell Inc, according to two people familiar with the matter.

Steinberg, 40, a technology portfolio manager with SAC Capital’s Sigma Capital division, previously had been named by prosecutors as an unindicted co-conspirator in a criminal prosecution involving two other recently convicted hedge fund traders, Todd Newman and Anthony Chiasson, who had also traded Dell shares.

Feb 1, 2013
via Unstructured Finance

Pay close attention to the timings in JPMorgan’s internal report

By late January last year, not even the London Whale himself thought the massive derivatives bets that eventually cost the bank $6.2 billion were such a good idea.

The Wall Street Journal reported today that Bruno Iksil, the credit trader nicknamed ‘the London Whale’ for the outsized positions he took in the small market for the CDX Index, warned his bosses a year ago that the size of his desk’s positions had gotten “scary.”

Jan 29, 2013

Exclusive: JPMorgan bet against itself in “Whale” trade

NEW YORK (Reuters) – There is a new twist in the London Whale trading scandal that cost JPMorgan Chase $6.2 billion in trading losses last year. Some of the firm’s own traders bet against the very derivatives positions placed by its chief investment office, said three people familiar with the matter.

The U.S. Senate Permanent Committee on Investigations, which launched an inquiry into the trading loss last fall, is looking into the how different divisions of the bank wound up on opposite sides of the same trade, said one of the people familiar with the matter.

Jan 29, 2013

JPMorgan bet against itself in ‘Whale’ trade

NEW YORK, Jan 29 (Reuters) – There is a new twist in the
London Whale trading scandal that cost JPMorgan Chase $6.2
billion in trading losses last year. Some of the firm’s own
traders bet against the very derivatives positions placed by its
chief investment office, said three people familiar with the
matter.

The U.S. Senate Permanent Committee on Investigations, which
launched an inquiry into the trading loss last fall, is looking
into the how different divisions of the bank wound up on
opposite sides of the same trade, said one of the people
familiar with the matter.

Jan 25, 2013

Goldman finds a way past Volcker with new credit fund

NEW YORK, Jan 25 (Reuters) – Goldman Sachs Group is looking
to raise up to $600 million from its wealthy customers for a
publicly traded credit fund that will provide loans to mid-sized
companies – believed to be the first fund of its kind for the
Wall Street bank.

The new fund, in which Goldman (GS.N: Quote, Profile, Research) could invest another
$150 million of its own money, is being structured as a business
development company, an investment vehicle that is specifically
exempt from the so-called Volcker Rule that puts limits on some
activities by Wall Street firms.

Jan 25, 2013

Exclusive: Goldman finds a way past Volcker with new credit fund

NEW YORK (Reuters) – Goldman Sachs Group is looking to raise up to $600 million from its wealthy customers for a publicly traded credit fund that will provide loans to mid-sized companies – believed to be the first fund of its kind for the Wall Street bank.

The new fund, in which Goldman could invest another $150 million of its own money, is being structured as a business development company, an investment vehicle that is specifically exempt from the so-called Volcker Rule that puts limits on some activities by Wall Street firms.

Jan 18, 2013
via MacroScope

SEC has power to ban high-frequency trading, congressman says

Not everyone agrees that using high-speed machines to trade stocks in less time than it takes the average person to blink is a bad thing, but the people who do might be heartened by the letter a congressman sent the U.S. Securities and Exchange Commission on Friday.

Rep. Edward Markey, a Massachusetts Democrat who has waged a decades-long struggle against computerized trading sent the SEC a hint: The power to curb high-frequency trading has been within its grasp all along.

Jan 17, 2013

US Senate panel to hold anti-money laundering hearing – sources

WASHINGTON, Jan 17 (Reuters) – The U.S. Senate Banking
Committee is expected to hold a hearing soon on anti-money
laundering issues, according to people familiar with the matter,
as the area is getting more scrutiny by U.S. enforcement
authorities and regulators.

A hearing could come in early March and include testimony
from representatives of the Office of the Comptroller of the
Currency, the Federal Reserve, the Treasury Department and the
Federal Deposit Insurance Corp, one source said.

Jan 16, 2013

JPMorgan blames risk management for “London Whale” loss

NEW YORK, Jan 16 (Reuters) – Peter Weiland, the most senior
risk officer in JPMorgan Chase’s Chief Investment Office before
the “London Whale” scandal broke last April, quietly resigned in
October, according to a report by the bank that emphasizes the
CIO’s risk-management failures.

Weiland’s resignation had not been previously reported in
the media.

The JPMorgan Chase & Co report was released on
Wednesday in conjunction with its fourth-quarter earnings. It
cited failures in risk management inside the CIO and by
JPMorgan’s senior management.

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      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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