Trading operations at Knight Capital Group are running again after the firm was forced to stop accepting orders yesterday amid a power outage at its Jersey City headquarters.
The market maker, which had been running on backup generators since Sandy landed on Monday evening, is said to have lost power around 11:45 a.m. yesterday. According Read More
Rajat Gupta, the former McKinsey & Co. chief executive convicted of insider trading this summer, will be sentenced today by Judge Jed Rakoff in the U.S. Southern District. The likely outcome? Somewhere between a trip to Rwanda and 10 years in prison.
Then again, Mr. Gupta’s sentencing may become moot. Lawyers for Raj Rajaratnam, the billionaire founder of Galleon Group now serving an 11-year insider-trading sentence, will ask a federal appeals court to overturn his conviction tomorrow, The Times’ Peter Lattman reports. At issue: The sanctity of the process by which the government requested and received a warrant to tap Mr. Rajaratnam’s phones, which warrant led not only to the hedge fund manager’s conviction, but were also indispensable to the prosecutors who put Mr. Gupta behind bars. Or Rwanda, whatever Judge Rakoff decides. Read More
Twenty-five years after the Black Monday stock market crash of 1987, the potential for a catastrophic plunge remains, says Bloomberg. The Wall Street Journal looks back at the articles it published on the week of Oct. 19, 1987.
It seems the Times has also seen a “bootleg” copy of Greg Smith’s Why I Left Goldman Sachs, and its take is in line with what we’ve read of the book so far: “Long on Mr. Smith’s reminiscences of the pleasures of the job—handmade suits, sashimi at 30,000 feet, strawberries at Wimbledon—the former Goldman salesman’s book does not break much new ground on illegal or questionable financial practices at the firm.” Read More
Politico got its hands on a copy of Greg Smith’s Why I Left Goldman Sachs, and published some excerpts yesterday. There’s an allegation that the bank advised clients to buy and sell stock options on European banks amid the region’s ongoing debt crisis, so that the firm could profit by taking the other side Read More
Bill Gates and former United Nations Secretary General Kofi Annan are among the friends of Rajat Gupta who have penned letters to Judge Jed Rakoff seeking leniency when the convicted insider trader is sentenced later this month.
A lobbying group backed by Elliott Management’s Paul Singer enlisted the American Agriculture Movement, the American Association Read More
Naval enthusiast Paul Singer of Elliott Management and secretive Mexican financier David Martinez are still battling in court, according to The New York Times. Mr. Martinez is said to have a $140 million painting by Jackson Pollock in his Time Warner Center apartment, but no one is willing to stake their name on it. Also Read More
A lawyer for the Argentina navy told a court in Ghana it would not pay Elliott Management $20 million for the release of the ARA Libertad, a training vessel used by the South American country’s navy. Elliott, the hedge fund managed by Paul Singer, seized the sailing ship last week in attempt to make good Read More
Max Berger has won billions in settlements in shareholder lawsuits involving Bank of America, Lehman Brothers, Merrill Lynch, Wachovia and Washington Mutual, according to The New York Times. Sometimes viewed in a harsh light, plaintiff’s lawyers are look better when their results are compared to the smaller settlements the government tends to command.
As Read More
It gets worse in Spain. In the run-up to the current crisis, banks sold retail customers 22 billion euros of high-yielding preferred shares. Bank losses deepened, the securities plunged in value and the retail customers saw their savings diminished, and in some cases, locked in an illiquid product. Now, angry Spaniards are finding an Read More
Barry Zubrow, JPMorgan’s head of regulatory affairs, will step down from the position by the end of the year, The Wall Street Journal says, as Jamie Dimon continues to shake up his inner circle. Four former members of the firm’s operating committee have left the bank or accepted lesser jobs in the last year, Read More
