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Oct 31, 2012

Millions in U.S. Northeast struggle after massive storm

NEW YORK, Oct 30 (Reuters) – The northeastern United States
battled epic flood waters and lengthy power outages on Tuesday
after the massive storm Sandy pummeled the coast with a record
storm surge, high winds and heavy rains that killed at least 45
people and caused billion of dollars in losses.

Millions of people in New York City and other hard-hit areas
will spend days or weeks recovering from a storm already seen as
far more destructive that Hurricane Irene, which slammed into
the same region a year ago. One disaster
modeling company said Sandy may have caused up to $15 billion in
insured losses.

Oct 31, 2012

East Coast reels from massive, deadly storm

NEW YORK (Reuters) – Millions of people faced epic flooding and lengthy power outages on Tuesday after the massive storm Sandy wreaked havoc in much of the eastern United States with high winds and heavy rains.

The storm killed at least 45 people, including at least 18 in New York City, and insurance companies started to tally billions of dollars in losses.

Oct 30, 2012

New York’s post-Sandy divide: Those with power and those without

NEW YORK (Reuters) – Sandy split New York City in two.

The massive storm left people damp, miserable and in the dark in the lower part of the city. Yet in much of the rest of Manhattan, life was almost normal, albeit without some of the usual urban comforts.

Almost every street below Times Square in the city’s Midtown district lost power on Monday night after an explosion at a Consolidated Edison power station, and it may not return for up to four days. A number of these areas had already been hit by flood waters.

Oct 26, 2012

New York man who sued Facebook faces criminal charges

By Emily Flitter and Grant McCool

(Reuters) – A New York man was arrested Friday on charges he forged documents in a multibillion-dollar scheme to defraud Facebook Inc and its chief executive, Mark Zuckerberg, through a lawsuit claiming a huge ownership stake in the Internet company.

Paul Ceglia, 39, a one-time wood-pellet salesman from Wellsville, New York, was charged with mail fraud and wire fraud over what federal prosecutors and the U.S. Postal Inspection Service said was fabricated evidence to support his claim to a large stake in Facebook through a 2003 deal with Zuckerberg.

Oct 26, 2012

NY man who sued Facebook faces criminal charges

Oct 26 (Reuters) – A New York man was arrested Friday on
charges he forged documents in a multibillion-dollar scheme to
defraud Facebook Inc and its chief executive, Mark
Zuckerberg, through a lawsuit claiming a huge ownership stake in
the Internet company.

Paul Ceglia, 39, a one-time wood-pellet salesman from
Wellsville, New York, was charged with mail fraud and wire fraud
over what federal prosecutors and the U.S. Postal Inspection
Service said was fabricated evidence to support his claim to a
large stake in Facebook through a 2003 deal with Zuckerberg.

Oct 24, 2012

“Ghost Exchange” film questions runaway stock market technology

NEW YORK (Reuters) – A Washington-based filmmaker is taking a hard look at how the U.S. stock market evolved from a crowded, noisy trading space into a quiet one dominated by machines in her new film, “Ghost Exchange.”

The feature-length documentary film portrays the market as a system in need of serious repair, with flaws that could be costing the U.S. economy some 20 million jobs.

Oct 23, 2012

CFTC may soon ask public for ideas on high-speed trading rules

NEW YORK, Oct 23 (Reuters) – The head of the U.S.
commodities regulator said on Tuesday that he is working on a
broad package of proposals for possible new rules governing high
frequency trading, which has been blamed for increasing market
volatility.

Commodity Futures Trading Commission Chairman Gary Gensler
said he had a designed a broad package of potential rules, which
address some of the dangers of high-speed trading, and he hoped
to put it before the commission “shortly.”

Oct 18, 2012

Firm in CNOOC-Nexen insider trade case agrees to settle with SEC

NEW YORK, Oct 18 (Reuters) – A Hong Kong-based firm has
agreed to pay more than $14 million to settle charges of trading
on inside knowledge of CNOOC Ltd’s bid for Nexen Inc
, the U.S. Securities and Exchange Commission said on
Thursday.

The SEC said Well Advantage proposed to pay back the illegal
profits made on the trades, plus a penalty worth the same
amount.

Oct 3, 2012
via Unstructured Finance

Former stock market ‘scalpers’ are vocal HFT critics

Photo

By Emily Flitter

REUTERS/Rebecca Cook

While the Securities and Exchange Commission maintains it does not need to do much to reign in the high frequency trading machines that have taken over Wall Street, a group of traders who understand how HFT firms make money—because it’s similar to the method they used to use themselves—have become vocal HFT critics. Yes, they may complain because they don’t make as much money as they used to, but they also think the machines are destabilizing the market.

Meet Dennis Dick, a prop trader in Detroit and a member of a league of stock market participants who have had to change their trading strategies now that they are no longer the fastest guns on the Street.

Oct 2, 2012

Insight – Chicago Fed warned on high-frequency trading

NEW YORK/WASHINGTON (Reuters) – More than two years ago, the Federal Reserve Bank of Chicago was pushing the U.S. Securities and Exchange Commission to get serious about the dangers of super-fast computer-driven trading. Only now is the SEC getting around to taking a closer look at some of those issues.

Critics of the SEC say the delay is part of a pattern of inaction in dealing with the fallout from high-frequency trading and shows that the regulator does not yet fully appreciate how fears of machine-driven market meltdowns are driving investors away from U.S. markets.

    • About Emily

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