EIC/Wall Street investigations
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Nov 4, 2011

The two faces of Jon Corzine

NEW YORK (Reuters) – Sometimes it seems there are two Jon Corzines.

There’s the statesman-like former senator and governor, who while serving this past year as a visiting professor at Princeton University’s Woodrow Wilson School of Public and International Affairs, has championed the need for stiffer regulation of Wall Street banks.

And there’s the risk-loving trader with a thirst for profits, who oversaw a $6.3 billion bet on European sovereign debt that culminated with Monday’s bankruptcy filing of MF Global Holdings MF.N.

Nov 3, 2011

Insight: The two faces of Jon Corzine

NEW YORK (Reuters) – Sometimes it seems there are two Jon Corzines.

There’s the statesman-like former senator and governor, who while serving this past year as a visiting professor at Princeton University’s Woodrow Wilson School of Public and International Affairs, has championed the need for stiffer regulation of Wall Street banks.

And there’s the risk-loving trader with a thirst for profits, who oversaw a $6.3 billion bet on European sovereign debt that culminated with Monday’s bankruptcy filing of MF Global Holdings.

Oct 16, 2011
via Unstructured Finance

The confession season

By Matthew Goldstein and Jennifer Ablan

The year is not yet over and already the confessions are starting to roll in from some of the biggest U.S. money managers.

Bill Gross, manager of the world’s biggest bond fund, sent out a “mea culpa” letter late Friday to his many mom-and-pop investors, saying he’s sorry for putting up such bad numbers this year. Mea culpas from Pimco’s guiding light and the self-styled “bond king” are rare, largely because his Total Return Fund has long been one of the industry’s top performers.

Oct 10, 2011

Paulson faces big test as clients mull future

BOSTON/NEW YORK (Reuters) – Hedge fund manager John Paulson, long lionized for his successful bets on the collapse of the subprime mortgage market and the surge in gold prices, is now facing the toughest challenge of his career.

With one of Paulson’s largest funds down nearly 50 percent for the year and several others also posting big losses, the big question is whether the manager’s large and wealthy fan base will scurry for the exits and seek to redeem billions of dollars by year’s end.

Oct 6, 2011
via Unstructured Finance

The law catches up to TL Gilliams

By Matthew Goldstein

Tyrone Gilliams Jr. wanted to live a larger than life story–with much of it playing out last year in videos he had produced and plastered all over the Internet. A year later, Gilliams true life drama has him fighting to maintain his freedom.

On Oct. 5, federal authorities arrested Gilliams and charged him with wire fraud in connection with a $4 million investment scheme that Reuters chronicled in a Special Report in May. As noted in yesterday’s arrest story, U.S. prosecutors in New York didn’t begin looking into Gilliams until Reuters reported that he allegedly had used some of his investors’ money to reinvent himself as a Philadelphia-area philanthropist.

Oct 5, 2011

Commodities trader/hip hop promoter arrested

NEW YORK, Oct 5 (Reuters) – Commodities trader and hip-hop
promoter Tyrone Gilliams was arrested Wednesday on charges of
running a $4 million investment scam, according to a criminal
complaint filed by federal prosecutors in New York.

Gilliams, known for promising his investors superior
returns, was arrested in Philadelphia and is charged with one
count of wire fraud.

Oct 4, 2011
via Unstructured Finance

Wall Street protesters just want to be heard

Early morning at Occupy Wall Street

Updated Oct. 5

By Matthew Goldstein and Jennifer Ablan

There’s been a lot of talk that other than rallying against bankers and corporate greed, the message coming from Occupy Wall Street isn’t a clear one. And many of the college students, artists, unemployed, transients who’ve set-up camp in a concrete plaza inĀ  lower Manhattan wouldn’t disagree with that assessment.

In fact, many of the young protesters–mostly in their 20s–seem to embrace the notion that it’s hard to define just what Occupy Wall Street is all about and what it hopes to achieve. For many, sleeping on the streets and staging a “Zombie March,” or getting arrested for blocking traffic on the Brooklyn Bridge is enough to bring attention to the fact that too many Americans are still suffering from the financial crisis.

Oct 4, 2011
via Unstructured Finance

Debts no honest man could pay

By Matthew Goldstein

For months now we’ve been hearing a lot about the $14 trillion in debt owed by the U.S. government. But there’s been far too little talk about the almost equally high debt tab owed by U.S. consumers.

The Federal Reserve recently reported that total outstanding debt owed by U.S. consumers was $11.4 trillion, down from its third-quarter 2008 peak of $12.5 trillion. At that pace, it could take years for U.S. consumers to delever, or in plain English–reduce the debts they owe on their homes, credit cards, autos and student loans. But when it comes to the staggering sum of consumer debt in this country, it’s pretty clear that time is not on our side.

Oct 3, 2011

A “great haircut” to kick-start U.S. growth

NEW YORK (Reuters) – More than three years after the financial crisis struck, the U.S. economy remains stuck in a consumer debt trap.

It’s a situation that could take years to correct itself. That’s why some economists are calling for a radical step: massive debt relief. Federal policy makers, they suggest, should broker what amounts to an out-of-court settlement between institutional bond investors, banks and consumer advocates – essentially, a “great haircut” to jumpstart the economy.

Oct 2, 2011

Special Report – A “great haircut” to kick-start U.S. growth

NEW YORK (Reuters) – More than three years after the financial crisis struck, the U.S. economy remains stuck in a consumer debt trap.

It’s a situation that could take years to correct itself. That’s why some economists are calling for a radical step: massive debt relief. Federal policy makers, they suggest, should broker what amounts to an out-of-court settlement between institutional bond investors, banks and consumer advocates – essentially, a “great haircut” to jumpstart the economy.