EIC/Wall Street investigations
Matthew's Feed
Aug 13, 2013

Ackman quits J.C. Penney board, ending feud

By Phil Wahba and Matthew Goldstein

(Reuters) – The circus-like atmosphere that had taken over the boardroom at J.C. Penney Co Inc ended on Tuesday with hedge fund billionaire William Ackman stepping down from the board of the struggling U.S. retailer.

Ackman’s decision to leave comes after a failed two-year attempt by his Pershing Square Capital Management hedge fund to remake Penney’s into a more upscale retail chain and a week of public fighting with other board members including interim-Chief Executive Officer Myron (Mike) Ullman.

Aug 12, 2013

J.C. Penney, Ackman in talks to resolve dispute: source

By Matthew Goldstein and Dhanya Skariachan

(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz) and hedge fund Pershing Square’s Bill Ackman are in talks to resolve their dispute over the leadership of the U.S. retailer, a source familiar with the situation said on Monday.

J.C. Penney and Ackman could reach a deal as early as later on Monday, the source said. The source added that a final deal had not yet been reached and talks could still fall apart.

Aug 9, 2013

U.S. considering arrests in JPMorgan ‘whale’ case: sources

NEW YORK (Reuters) – U.S. authorities investigating the $6.2 billion “London Whale” trading losses at JPMorgan Chase & Co are considering making arrests, the latest twist in a case that created a scandal for the largest U.S. bank, according to two people familiar with the situation.

The main target of the investigation is Javier Martin-Artajo, according to the sources, who did not want to be identified because the investigation is ongoing. Artajo worked in London as the direct supervisor of Bruno Iksil, the trader who became known as “the London Whale” after making outsized bets in a thinly traded derivatives market.

Jul 31, 2013

Pershing Square tax lien offers peek into Ackman strategy

NEW YORK (Reuters) – A federal tax lien slapped on a small company that William Ackman’s $12 billion hedge fund used nearly three years ago to acquire shares in a publicly traded liquor manufacturer is shedding light on his investment strategies.

Employing small companies incorporated in Delaware by his hedge fund company, Pershing Square Capital Management LP, Ackman has been able to buy stakes in companies he is targeting without having to publicly disclose his actions.

Jul 28, 2013

Steven Cohen throws a party despite his fund’s indictment

By Matthew Goldstein

(Reuters) – Hedge fund billionaire Steven A. Cohen did not let the filing of criminal charges against his $14 billion SAC Capital Advisors get in the way of a party this weekend at his vacation estate in tony East Hampton, New York.

The Saturday night party at Cohen’s 10-bedroom home on Further Lane took place two days after federal prosecutors in New York announced the filing of a five-count criminal indictment against SAC Capital that portrayed the 21-year-old Stamford, Conn.-based fund as a breeding ground for unlawful insider trading.

Jul 24, 2013

DOJ expects to charge SAC Capital on Thursday – source

NEW YORK (Reuters) – Federal prosecutors are continuing to look for ways to build a criminal case against billionaire trader Steven A. Cohen at the same time as they prepare to announce criminal charges against his hedge fund, said people familiar with the investigation.

Charges of securities fraud and wire fraud expected to be filed against the company on Thursday, according to a source familiar with the investigation.

Jul 24, 2013

DOJ’s decision on criminal charges against SAC Capital nears

NEW YORK (Reuters) – Federal prosecutors who have investigated hedge fund titan Steven A. Cohen for years on allegations of insider trading have decided they do not have enough evidence to get him, so they are going after his company instead.

The Manhattan U.S. Attorney’s office is nearing a decision about filing criminal charges against Cohen’s $15 billion SAC Capital Advisors hedge fund, said a person familiar with the matter.

Jul 22, 2013
via Unstructured Finance

SEC vs. SAC give rise to many legal theories

It seems everyone has their own pet theory about why the SEC chose now to move against hedge fund titan Steven A. Cohen after years of being part of the hunt along with the FBI and federal prosecutors.

Here are few of them that I got from talking to a number of legal eagles: including former prosecutors and regulators.

Jul 2, 2013

Cohen’s $15 billion SAC Capital up 1.5 percent in June: source

NEW YORK (Reuters) – June was a tough month for hedge fund billionaire Steven A. Cohen on the insider trading investigation front, but it did not show up in the performance of his $15 billion SAC Capital Advisors, which posted a 1.5 percent gain, according to an investor familiar with the numbers.

For the year, that SAC Capital main fund is up about 8.25 percent after fees, the source said. SAC charges some of the highest fees in the $2.2 trillion hedge fund industry.

Jul 1, 2013
via Unstructured Finance

Home sweet home, Blackstone

Kay Chapman and her boyfriend were saving up money to buy a home in the Las Vegas metro area while renting a home in a nearby town. But after months of plotting a strategy to buy a home at a foreclosure auction, they’ve given up for now and will soon move into another rental home–this one owned by private equity giant Blackstone Group.

Chapman and her boyfriend had to alter their strategy because the owner of the home they are currently renting from decided to sell after seeing how quickly home prices have surged in Sin City in the wake of all the institutional buying firms like Blackstone. Chapman’s current landlord wants far more for the house than she and her boyfriend are willing to pay.