SEARCH BY CATEGORY
SEC’s Controversial Money Market Plans.
(Throwing More Rules at a Potential Fire)
– Howard Haykin, C-I Managing Editor
More than 3 years ago, following the collapse of Lehman Brothers, Chicago-based Reserve Primary Fund lowered its share price below $1 – “breaking the buck” – because of its large exposure to Lehman Brothers short-term debt. This event triggered a panic among investors who “a run” on that fund and others. The Federal Reserve intervened, muffling investor concern.
Objective of New SEC Rule. The $2.7 trillion money market fund industry, in the eyes of the SEC and other government agencies, is still a giant ‘powder keg’ that has not been stabilized. In the coming weeks, the SEC will introduce a 2-part plan to stabilize money market funds. …
The Right Technology for Social Media Surveillance. Part 2
by Larry Goldfarb
Regulators see m to have a real zeal for surveillance of social media – at a level not seen since the early days of email archiving. And they may be on to something. Rather than talk on their cell phones, people now text or email. They also tweet or use Facebook. In fact, social media is becoming more popular than TV; and, everyone seems to have an iPad.
So if you want to speak to your customers, you have to use the communication method of choice. Prior to my January 9th column on Social Media – Part I, I solicited some vendors I know have a good reputation for social media surveillance. Let me share my findings, in the following brief analysis. (And, please feel free to contact me for any information, or help with contacts at any of these firms. As always, I can be reached at larrygoldfarb@verizon.net.
FINRA Sanctioned Supervisor – Overrode Customer Instrux
– Howard Haykin, C-I Managing Editor
A registered principal, with Miami-based LaFise Securities, agreed to settle FINRA charges she instructed an RR not to execute transactions that various customers had authorized so as to limit their losses on short U.S. Treasuries positions.
FINRA Findings and Allegations. An RR, who reported to Marcela Zamora Erana, serviced 5 customer accounts on a discretionary basis. All 5 employed a similar trading strategy of shorting U.S. Treasuries on margin. However, in late 2008, the price of Treasuries increased, rather than fall – and for a time, the customers agreed to continue shorting U.S. Treasuries.
Losses Force UBS to Raise More Capital. [cnbc]
‘Volcker’ May Revive Old Dividing Line in Banks. [dealbook]
First U.S. FCPA Case Built From Sting is Dropped. [b-w] and
DOJ Closes Allianz Bribery Case – No Charges. [reuters]
Quarterly Disciplinary Review (podcast). [finra]
Ex-Goldman Analyst Writes White Collar Crime Tale. [reuters]
Greek Crisis Raises New CDS Fears. [dealbook]
John Paulson Firm Sued Over Sino-Forest Bet. [reuters]
Middle Class Getting Pushed Out of Banking: Whitney. [cnbc]
MF Global Failure: A Tax Crunch for Farmers. [reuters]
Copyright © 2011, ComplianceCircle.com LLC. All rights reserved.
