SEC Settles with Citigroup – Public Loses?

In today’s New York Times there is an article by Gretchen Morgenson discussing the failure of the Securities and Exchange Commission to bring charges against persons responsible for financial institution misconduct.  The issue is viewed in the context of a recent settlement. Earlier this month, the Securities and Exchange Commission announced an administrative settlement with […]

Is High-Frequency Trading a Crime?

Last Friday, U.S. Attorney General Eric Holder appeared before a congressional hearing and told the congressional representatives that the Justice Department was looking into the practice of high-frequency trading to determine whether the practice violates insider trading laws.  This is an issue that the Securities and Exchange Commission and the Federal Bureau of Investigation are […]

Volcker Rule Approved by Five Federal Agencies

A rule pursuant to the 2010 Dodd Frank Act, which sought to address the nation’s financial system to prevent a financial crisis similar to that of 2008, was approved by five federal agencies with banking oversight duties. Known as the “Volcker Rule” after former federal reserve chairman Paul Volcker, who proposed the regulation, the rule […]

Financial Advisor Charged with Operating a Ponzi Scheme

Federal prosecutors in Boston filed fraud charges against a former financial advisor, who also hosted a financial information radio program. The 13 fraud counts allege that Gregg Rennie diverted to personal use at least $3.2 million that he had persuaded clients to invest. Allegedly, Rennie convinced clients to purchase financial instruments that he called “federal […]

IG Finds Incompetence Not Corruption in SEC’s Madoff Failure

The Inspector General of the Securities and Exchange Commission has released his report of the investigation of the SEC’s failure to uncover Bernard Madoff’s Ponzi scheme. The IG did not find evidence that any SEC personnel benefited financially or in any other inappropriate capacity from a connection with Madoff that influenced the examinations and investigations. […]

SEC Charges Six with Insider Trading in Miami Acquisition

The Securities and Exchange Commission has filed a complaint in federal court in Miami alleging insider trading by six individuals. The trades involved the stock of the Neff Corporation. In early 2005 Neff agreed to the acquisition offer of Odyssey Investment Partners, LLC. Several individuals with knowledge of the upcoming merger purchased Neff stock prior […]

Subprime Mortgage Meltdown Enforcement and Civil Litigation Heating Up

All levels of government are becoming involved in responding to the subprime mortgage meltdown. In addition private litigants are beginning to file legal actions. The federal government’s enforcement response will be spearheaded by the Securities and Exchange Commission and the Department of Justice. The SEC has created a subprime task force to investigate cases associated […]

SEC and Fed Reach Memorandum of Understanding to Share Information

In an attempt to confront regulatory gaps the Securities and Exchange Commission and the Federal Reserve have reached a memorandum of understanding to allow the staffs of the two agencies to share information. The Fed has regulatory responsibilities for banks, bank holding companies, financial holding companies and their subsidiaries, and foreign banks. The SEC regulates […]