EIC/Wall Street investigations
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Sep 26, 2013

Exclusive: KCG nears $12 million settlement with SEC on Knight glitch – sources

NEW YORK (Reuters) – The successor company to Knight Capital Group is near a settlement of around $12 million with the U.S. Securities and Exchange Commission related to last year’s trading glitch that disrupted equity markets and led to Knight’s sale, according to two sources.

The board of KCG Holdings Inc has approved the amount and the process is in the hands of the SEC, but nothing has been finalized, the sources said.

Sep 26, 2013

KCG nears $12 mln settlement with SEC on Knight glitch -sources

NEW YORK, Sept 26 (Reuters) – The successor company to
Knight Capital Group is near a settlement of around $12 million
with the U.S. Securities and Exchange Commission related to last
year’s trading glitch that disrupted equity markets and led to
Knight’s sale, according to two sources.

The board of KCG Holdings Inc has approved the
amount and the process is in the hands of the SEC, but nothing
has been finalized, the sources said.

Sep 25, 2013

Cohen’s SAC Capital up 13 pct for year – source

NEW YORK, Sept 25 (Reuters) – Steven A. Cohen’s SAC Capital
Advisors hedge fund has posted strong returns so far this year
even as it deals with a criminal indictment charging the $14
billion fund with being a breeding ground for insider trading.

A source familiar with the firm said Cohen’s fund was up
about 13 percent this year as of last Friday and has had a
particularly good September.

Sep 24, 2013
via Unstructured Finance

Home gold rush is over

The pressure keeps building on small players in the buy-to-rent trade to cash out and flip the foreclosed homes they snapped up to the biggest investors in the space.

The news that Oaktree Capital Management and Carrington Mortgage Services are putting the 500 homes they’ve acquired and leased out up for bid may well be an indication of more to come. With increases in rents leveling off, the economics of buying single-family homes to rent them out becomes more dicey–especially given the 20% or greater surge in home prices in the markets favored by investors .

Sep 23, 2013

Exclusive – Oaktree group to sell U.S. foreclosed homes: sources

NEW YORK (Reuters) – Oaktree Capital Group is leading an effort to put up for sale roughly 500 fully-leased homes, an indication some early investors are looking to cash-out on the recovery in U.S. housing prices, according to sources familiar with the market.

Oaktree, which manages about $76 billion, and its partner Carrington Mortgage Services are entertaining bids for the portfolio of fully-leased homes as they seek to exit from the buy-to-rent trade that has become popular the past two years with hedge funds and private equity firms.

Sep 23, 2013

Oaktree group to sell U.S. foreclosed homes -sources

NEW YORK, Sept 23 (Reuters) – Oaktree Capital Group is
leading an effort to put up for sale roughly 500 fully-leased
homes, an indication some early investors are looking to
cash-out on the recovery in U.S. housing prices, according to
sources familiar with the market.

Oaktree, which manages about $76 billion, and its
partner Carrington Mortgage Services are entertaining bids for
the portfolio of fully-leased homes as they seek to exit from
the buy-to-rent trade that has become popular the past two years
with hedge funds and private equity firms.

Sep 17, 2013

JPM’s Whale troubles may not end with civil settlement

NEW YORK, Sept 17 (Reuters) – U.S. prosecutors are still
investigating JPMorgan Chase & Co’s “London Whale”
trading scandal for potential criminal wrongdoing, according to
people familiar with the probe, in a sign that an expected $700
million regulatory settlement may not put the issue to rest for
the largest U.S. bank.

Federal prosecutors in New York and FBI agents are piecing
together the events that led JPMorgan to restate its 2012
first-quarter earnings and eventually reveal more than $6
billion of losses from enormous bets a group of London-based
traders made on illiquid credit derivatives, according to
several sources.

Sep 17, 2013

Exclusive – Civil settlement does not end JPM’s ‘Whale’ troubles

NEW YORK (Reuters) – U.S. prosecutors are still looking into events surrounding JPMorgan Chase & Co’s (JPM.N: Quote, Profile, Research, Stock Buzz) “London Whale” trading scandal for potential wrongdoing by the bank itself, according to several people familiar with the probe, in a sign that an expected $700 million civil settlement with regulators on the issue may not end its legal woes.

The criminal probe being conducted by the Federal Bureau of Investigation and federal prosecutors in New York, which has already resulted in fraud charges against two former JPMorgan employees, is looking at the role others at the largest U.S. bank played in its $6.2 billion trading loss, the sources said.

Sep 17, 2013

Civil settlement does not end JPM’s ‘Whale’ troubles

NEW YORK, Sept 17 (Reuters) – U.S. prosecutors are still
looking into events surrounding JPMorgan Chase & Co’s
“London Whale” trading scandal for potential wrongdoing by the
bank itself, according to several people familiar with the
probe, in a sign that an expected $700 million civil settlement
with regulators on the issue may not end its legal woes.

The criminal probe being conducted by the Federal Bureau of
Investigation and federal prosecutors in New York, which has
already resulted in fraud charges against two former JPMorgan
employees, is looking at the role others at the largest U.S.
bank played in its $6.2 billion trading loss, the sources said.

Aug 18, 2013

How Ackman’s Herbalife bet inflamed Wall Street passions

NEW YORK (Reuters) – The origins of a vitriolic battle that has pitted billionaire hedge fund manager Bill Ackman against rivals such as Carl Icahn, Dan Loeb and George Soros can be traced back to a routine event in the world of investor activism: The unveiling in late December of Pershing Square Capital Management’s bearish bet against Herbalife Ltd.

Hedge fund industry sources said the timing of the three-hour presentation – less than a week before Christmas – riled other investors and brought out into the open festering resentment against Ackman, already seen by some as too arrogant even for the alpha-male world of hedge fund managers.