Some U.S. hedge fund advisers misrepresent hedge funds by "cherry-picking" investments to showcase their performance and improperly changing how they value securities. Andrew Bowden, head of the SEC's Office of Compliance, Inspections and Examinations, revealed preliminary [...]
SAC Capital Advisors LP money manager Michael Steinberg lost a bid to delay his insider-trading case, leaving him to face a jury next week in the first of two upcoming trials tied to the hedge fund [...]
JP Morgan $13 Billion Settlement One of The US Largest Settlements by a single company and dwarfs fines previously imposed by the Justice Department.
Hedge fund insider-trading lawsuit against Rengan Rajaratnam has been delayed due to the ongoing federal government shutdown. Hedge fund insider-trading lawsuit against Rengan Rajaratnam has been delayed due to the ongoing federal government shutdown. Rengan Rajaratnam, the younger brother of the now imprisoned hedge fund billionaire Raj Rajaratnam.
On Monday, federal legislation goes into effect to allow small start-ups to ask for equity investments publicly, such as through social media sites or elsewhere on the Internet, without having to register the shares for public [...]
Goldman Sachs Trader Fabrice Tourre Found Guilty in $1 Billion Fraud Case. The jury found Goldman Sachs banker Fabrice Tourre liable for his role in a mortgage deal that lost some investors $1 billion during the [...]
SEC Lifts 80 Year Old Ban for Hedge Fund to Advertise. Hedge funds and other companies seeking private investments will be allowed to advertise publicly for funding under a rule approved on Wednesday by the U.S. [...]
SEC trying to turn financial crisis poster boy into sacrificial lamb Next week, Fabrice Tourre goes on trial for securities fraud. Tourre, now 34, is the former Goldman Sachs investment banker who, in 2007, packaged [...]
The UK's Finacial Conduct Authority FCA Has Ramped Up Scrunity of the Hedge Fund Industry. FCA – and the Bank of England’s Prudential Regulation Authority scrutiny of the hedge fund industry and in a growing sign of its reach is also paying more attention to the activities of US hedge funds with operations in the UK.
Absolute Return magazine just published an interview with a Christian minister by the name of Jeff Grant who runs a not-for-profit program called the Progressive Prison Project in Greenwich, Connecticut. Since 2008, Grant has been counseling hedge fund [...]
JPMorgan re-ignites the corporate governance controversy Some saw the issue as silly, others as a turning point in US corporate governance. Should Jamie Dimon give up his Chairmanship of JPMorgan? For concededly good reasons, America’s best-known banker lost some [...]
Insider Trading Steps Closer to Strict Liability SEC Sues Investment Banker Richard Bruce Moore Who Just Put 2&2 Together. In 2010, Richard Bruce Moore, an investment banker at Canadian Imperial Bank of Commerce (“CIBC”), counted the Canadian Pension Plan Investment Board (the “Pension Board”) among his best clients. Through Moore’s efforts, the Pension Board regularly used CIBC to finance its private equity investments.
Whether they know it or not, managers of US hedge and private equity funds would have to register with the SEC as securities brokers in order to sell interests in their funds to outside US [...]
Australia apparently answers the question raised during the Romney campaign as to whether private equity creates value in an economy.
Billionaire hedge funders play poker over an activist target At an investor conference last December, hedge fund activist Bill Ackman spent 3-½ hours explaining why Herbalife, the 33-year-old direct marketer of nutritional supplements, was nothing more than a Ponzi scheme whose stock was worthless.
Operational due diligence analysts find more red flags in hedge funds’ compliance and regulatory functions than any other area Compliance and regulatory failures are the most common problems identified by operational due diligence (ODD) analysts when [...]
The days of ‘rubber-stamping’ Cayman boards are over If “carried interest” is not enough to fret about, US private equity and hedge fund managers now face the unwelcome prospect of “independent” boards. The model of a [...]
By Stephen Bornstein Ever since AAA-rated subprime mortgage-backed securities (“MBS”) collapsed during the global financial crisis, sharp attention has been focused on the business model of the US credit rating agencies. At issue is whether [...]
Cover-up at the SEC? BY STEPHEN BORNSTEIN - Hedge Fund Attorney Mary Schapiro may have left the SEC last month, but she now faces a potentially ruinous blot on her legacy at the agency she chaired [...]
By Hedge Fund Lawyer, Stephen Bornstein Paul Singer resorts to privateering to collect on his hedge fund’s sovereign bonds Often described as soft-spoken, mild-mannered and publicity-shy, Paul Singer, the plutocratic founder and head of $21 billion [...]
[three_fourth last="no"]...[/three_fourth]Lawyers with Dodd-Frank Act and regulatory expertise are being wooed by private equity firms and hedge funds in need of an in-house compliance team. The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in [...]
Article by Senior Hedge Fund Attorney Stephen Bornstein The new Archbishop of Canterbury thinks our banks and hedge funds have crossed the line Did our banks and hedge funds bring about the financial crisis of 2008 [...]
Gupta’s Appeal Could Blacken His Name Instead of Clearing It Contributed by Hedge Fund Legal Expert Stephen Bornstein If he prevails, Rajat Gupta could become Wall Street’s ‘O.J. Simpson’Of all the Wall Street players U.S. attorney Preet [...]
Contributed By Stephen Bornstein to the Official New York City Asset Management Law Blog Coming as he does out of private equity, Mitt Romney would unquestionably change the tone of the conversation between Washington and Wall [...]
New SEC registration requirements for U.S. and foreign investment advisers and private fund managers post Dodd-Frank If you’re just starting out as a U.S. investment adviser or private fund manager, this is what you need [...]
We have been keeping a close eye on the street and ear to the ground - a friend who I met for dinner this past week recently left a senior post at FINRA for seat in [...]
BY STEPHEN BORNSTEIN Should the current reporting window for 5% equity stakes be closed? Whenever a hedge fund activist like Bill Ackman, David Einhorn or Dan Loeb picks a company to attack, he quietly amasses 5% of the [...]
Hedge fund regulations proposed by South Africa’s treasury and the Financial Services Board - aimed at protecting investors and promoting financial stability. Restricted hedge funds, which are limited to qualified investors, and retail hedge funds “will [...]
Hedge Funds! Private Equity Funds! – From 20%-80% Off! Found on the Official New York City Asset Management Law Blog Secondary market offers permanent capital for managers and an exit option for investors Before 2008, the [...]
Sell-out Uncovered in a Private Equity Buy-out By Stephen Bornstein After thinking about it for almost a year, management of Del Monte Foods Company finally decided in late 2010 to sell the company to a private [...]
SEC proposes new rules to implement JOBS Act provision about hedge fund solicitation and advertising in securities offerings. The Securities and Exchange Commission took a nice stride today in proposing the long awaited "new rules" for [...]
Zingers from Buffett, Welch and Weill - By Stephen Bornstein Bold ideas to fix Wall Street from three unexpected sources Three of the biggest names on Wall Street have sent shock waves through the financial system [...]
Hedge Fund Lawyer Stephen Bornstein - www.Sab-At-Law.com By Stephen Bornstein on Monday, July 23, 2012 Defanging the bonus system without ruining Wall Street Preet Bhahara, the U.S. attorney whose office convicted Rajat Gupta, [...]
European regulators published draft rules on Thursday to crack down on excessive bonuses for hedge fund managers. The European Securities and Markets Authority (ESMA) said on Thursday such curbs must be extended to managers of alternative [...]
The Dodd Frank Effect in Hedge Funds Unions and PE By Steven Brill to Reuters 1. The Dodd-Frank effect: Good, bad or both? Although the Consumer Financial Protection Bureau, the mega-agency created by the Dodd-Frank financial [...]