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	<title>Observer &#187; Russell Wasendorf</title>
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		<title>Observer &#187; Russell Wasendorf</title>
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		<title>Morgan Stanley and Citigroup Reach Deal; UBS Whitsleblower Got Prison Sentence, $104 Million: Roundup</title>

		<comments>http://observer.com/2012/09/morgan-stanley-and-citigroup-reach-deal-ubs-whitsleblower-got-prison-sentence-104-million-roundup/#comments</comments>
		<pubDate>Wed, 12 Sep 2012 07:49:30 -0400</pubDate>
					<link>http://observer.com/2012/09/morgan-stanley-and-citigroup-reach-deal-ubs-whitsleblower-got-prison-sentence-104-million-roundup/</link>
			<dc:creator>Patrick Clark</dc:creator>
				
		<guid isPermaLink="false">http://observer.com/?p=262556</guid>
		<description><![CDATA[<p>Morgan Stanley and Citigroup agreed to value <strong>Morgan Stanley Smith Barney</strong> at $13.5 billion, more than the outside bankers hired to mediate the deal said the <a href="http://www.bloomberg.com/news/2012-09-11/citigroup-said-to-end-mssb-fight-with-morgan-stanley-overnight.html">joint venture brokerage was worth</a>. According to Bloomberg, Perella Weinberg Partners priced the brokerage at the lower end of the difference between valuations submitted by Morgan Stanley and Citi, which would have resulted in a final price of less than $11.5 billion. The banks agreed on the higher value, however, fixing the price at which Morgan Stanley will acquire Citi's stake in the partnership. <!--more--></p>
<p>Bradley Birkenfeld, the former <strong>UBS</strong> banker who provided the Internal Revenue Service with evidence that the Swiss bank was helping U.S. citizens evade taxes, will receive $104 million in a <a href="http://www.bloomberg.com/news/2012-09-11/ubs-whistle-blower-birkenfeld-secures-irs-award-lawyers-say.html">whistleblower award.</a> Mr. Birkenfeld, who said he once concealed diamonds in a toothpaste tube on behalf of a client, was released from prison on Aug. 1 after serving part of a 40-month sentence after confessing that he had forgotten to blow the whistle on himself.</p>
<p><strong>Deutsche Bank</strong> is lagging behind its European peers when it comes to meeting new <a href="http://www.bloomberg.com/news/2012-09-11/deutsche-bank-overhaul-leaves-firm-trailing-peers-on-capital.html">regulatory capital requirements</a>, according to Bloomberg. The bank may cut jobs and reduce pay ratios under a restructuring plan announced this week.</p>
<p>A German court paved the way for the <strong>European Central Bank</strong> to begin a new program to buy sovereign debt, <a href="http://online.wsj.com/article/SB10000872396390444426404577646790818143160.html?mod=WSJ_hpp_LEFTTopStories">dismissing a lawsuit</a> that sought to delay the plan.</p>
<p>Two-thirds of economists polled by Bloomberg think that the <strong>Federal Reserve</strong> will announce <a href="http://www.bloomberg.com/news/2012-09-12/fed-seen-starting-qe3-while-extending-rate-pledge-to-2015.html">a new round of bond purchases</a> tomorrow.</p>
<p>More details in the plea agreement signed by <strong>Peregrine Financial Group</strong> founder Russell Wasendorf Sr., who faces up to 50 years in prison under a <a href="http://online.wsj.com/article/SB10000872396390444017504577645750763125344.html?mod=googlenews_wsj">deal with prosecutors</a>.</p>
<p>Zuck spoke; <strong>Facebook</strong> <a href="http://bits.blogs.nytimes.com/2012/09/11/zuckerberg-acknowledges-disappointing-wall-street/?ref=business">shares rose</a>.</p>
<p>Plaintiffs say that <strong>private equity firms</strong> including KKR, Silver Lake Partners and Bain Capital colluded to tamp down prices on buyout deals, according to a <a href="http://www.nytimes.com/2012/09/12/business/documents-depict-equity-firms-like-bain-as-colluding.html?pagewanted=1">complaint filed</a> in Massachusetts Federal District Court. <em>The New York Times </em>went to court to get the documents, which Bain lawyers worried would get washed into the election news cycle.</p>
<p>No one in France believes <strong>Bernard Arnault</strong>, the Louis Vuitton chief and the country's richest man, when he says he'll keep <a href="http://www.cnbc.com/id/48998008">paying taxes</a> in France once he's received Belgian nationality, according to <em>The Financial Times. </em>French president François Hollande has promised to tax income above 1 million euros at 75 percent.</p>
]]></description>
		<content:encoded><![CDATA[<p>Morgan Stanley and Citigroup agreed to value <strong>Morgan Stanley Smith Barney</strong> at $13.5 billion, more than the outside bankers hired to mediate the deal said the <a href="http://www.bloomberg.com/news/2012-09-11/citigroup-said-to-end-mssb-fight-with-morgan-stanley-overnight.html">joint venture brokerage was worth</a>. According to Bloomberg, Perella Weinberg Partners priced the brokerage at the lower end of the difference between valuations submitted by Morgan Stanley and Citi, which would have resulted in a final price of less than $11.5 billion. The banks agreed on the higher value, however, fixing the price at which Morgan Stanley will acquire Citi's stake in the partnership. <!--more--></p>
<p>Bradley Birkenfeld, the former <strong>UBS</strong> banker who provided the Internal Revenue Service with evidence that the Swiss bank was helping U.S. citizens evade taxes, will receive $104 million in a <a href="http://www.bloomberg.com/news/2012-09-11/ubs-whistle-blower-birkenfeld-secures-irs-award-lawyers-say.html">whistleblower award.</a> Mr. Birkenfeld, who said he once concealed diamonds in a toothpaste tube on behalf of a client, was released from prison on Aug. 1 after serving part of a 40-month sentence after confessing that he had forgotten to blow the whistle on himself.</p>
<p><strong>Deutsche Bank</strong> is lagging behind its European peers when it comes to meeting new <a href="http://www.bloomberg.com/news/2012-09-11/deutsche-bank-overhaul-leaves-firm-trailing-peers-on-capital.html">regulatory capital requirements</a>, according to Bloomberg. The bank may cut jobs and reduce pay ratios under a restructuring plan announced this week.</p>
<p>A German court paved the way for the <strong>European Central Bank</strong> to begin a new program to buy sovereign debt, <a href="http://online.wsj.com/article/SB10000872396390444426404577646790818143160.html?mod=WSJ_hpp_LEFTTopStories">dismissing a lawsuit</a> that sought to delay the plan.</p>
<p>Two-thirds of economists polled by Bloomberg think that the <strong>Federal Reserve</strong> will announce <a href="http://www.bloomberg.com/news/2012-09-12/fed-seen-starting-qe3-while-extending-rate-pledge-to-2015.html">a new round of bond purchases</a> tomorrow.</p>
<p>More details in the plea agreement signed by <strong>Peregrine Financial Group</strong> founder Russell Wasendorf Sr., who faces up to 50 years in prison under a <a href="http://online.wsj.com/article/SB10000872396390444017504577645750763125344.html?mod=googlenews_wsj">deal with prosecutors</a>.</p>
<p>Zuck spoke; <strong>Facebook</strong> <a href="http://bits.blogs.nytimes.com/2012/09/11/zuckerberg-acknowledges-disappointing-wall-street/?ref=business">shares rose</a>.</p>
<p>Plaintiffs say that <strong>private equity firms</strong> including KKR, Silver Lake Partners and Bain Capital colluded to tamp down prices on buyout deals, according to a <a href="http://www.nytimes.com/2012/09/12/business/documents-depict-equity-firms-like-bain-as-colluding.html?pagewanted=1">complaint filed</a> in Massachusetts Federal District Court. <em>The New York Times </em>went to court to get the documents, which Bain lawyers worried would get washed into the election news cycle.</p>
<p>No one in France believes <strong>Bernard Arnault</strong>, the Louis Vuitton chief and the country's richest man, when he says he'll keep <a href="http://www.cnbc.com/id/48998008">paying taxes</a> in France once he's received Belgian nationality, according to <em>The Financial Times. </em>French president François Hollande has promised to tax income above 1 million euros at 75 percent.</p>
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		<title>Peregrine Financial Group Regulator Kicks in Fine Paid By Iowa Broker to Bankruptcy Trustee (Update)</title>

		<comments>http://observer.com/2012/09/peregrine-financial-group-regulator-kicks-in-fine-paid-by-thieving-broker-to-bankruptcy-trustee/#comments</comments>
		<pubDate>Tue, 11 Sep 2012 17:04:58 -0400</pubDate>
					<link>http://observer.com/2012/09/peregrine-financial-group-regulator-kicks-in-fine-paid-by-thieving-broker-to-bankruptcy-trustee/</link>
			<dc:creator>Patrick Clark</dc:creator>
				
		<guid isPermaLink="false">http://observer.com/?p=262354</guid>
		<description><![CDATA[<p><div id="attachment_262385" class="wp-caption alignleft" style="width: 160px"><a href="http://observer.com/2012/09/peregrine-financial-group-regulator-kicks-in-fine-paid-by-thieving-broker-to-bankruptcy-trustee/wasendorf-8/" rel="attachment wp-att-262385"><img class="size-full wp-image-262385" title="Wasendorf" src="http://nyoobserver.files.wordpress.com/2012/09/wasendorf.jpg" alt="" width="150" height="186" /></a><p class="wp-caption-text">Russell Wasendorf Sr.</p></div></p>
<p>There are <a href="http://observer.com/2012/09/spongebob-silver-coins-missing-johnny-bench-glove-in-hand/">lost assets and found assets</a> in the bankruptcy of Peregrine Financial Group, the Iowa-based futures dealer than folded in July after the firm's founder said in a note left before his attempted suicide that he'd used a color printer to hide that his company's bank account was missing some $200 million in client funds.</p>
<p>Lost assets included 304 silver coins depicting characters from the children's TV show <em>SpongeBob SquarePants</em>, valued at about $20,000; Found assets included a baseball glove signed by former New York Yankees manager Joe Torre and baseball hall-of-famer Johnny Bench, all of which may sounds strange if you haven't been following the saga, which has included tales of Peregrine founder Russell Wasendorf's <a href="http://online.wsj.com/article/SB10001424052702304373804577521191579035590.html">shotgun wedding</a>, <a href="http://blogs.wsj.com/deals/2012/07/17/excerpts-from-russell-wasenforf-sr-s-confession/">wizardry with Adobe Photoshop</a> and catastrophic experience in <a href="http://www.reuters.com/article/2012/07/13/us-pfgbest-wasendorf-romania-idUSBRE86C03Y20120713">Romanian real estate</a>. <!--more-->Still, you take what you can get, and today the Peregrine trustee got $700,000 from the National Futures Association, an amount equal to the fine paid by Peregrine to the self-regulating organization in February. According to <a href="http://online.wsj.com/article/SB10000872396390444017504577645750763125344.html?mod=googlenews_wsj"><em>The Wall Street Journal:</em></a></p>
<blockquote><p><em>The fine was part of a settlement of charges related to an alleged Ponzi scheme run by a customer of the brokerage. The agency charged that Peregrine didn't properly monitor and report suspicious activity, and the firm agreed to the fine without admitting or denying the allegations.</em></p></blockquote>
<p>Now, if we could only track down that crafty real estate agent.</p>
<p><strong>Update: </strong>Mr. Wasendorf has reached a plea deal in which "he <a href="http://www.bloomberg.com/news/2012-09-11/peregrine-s-wasendorf-signs-plea-deal-fbi-agent-tells-court.html">admits to mail fraud</a>, embezzlement and making false statements," according to Bloomberg.</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_262385" class="wp-caption alignleft" style="width: 160px"><a href="http://observer.com/2012/09/peregrine-financial-group-regulator-kicks-in-fine-paid-by-thieving-broker-to-bankruptcy-trustee/wasendorf-8/" rel="attachment wp-att-262385"><img class="size-full wp-image-262385" title="Wasendorf" src="http://nyoobserver.files.wordpress.com/2012/09/wasendorf.jpg" alt="" width="150" height="186" /></a><p class="wp-caption-text">Russell Wasendorf Sr.</p></div></p>
<p>There are <a href="http://observer.com/2012/09/spongebob-silver-coins-missing-johnny-bench-glove-in-hand/">lost assets and found assets</a> in the bankruptcy of Peregrine Financial Group, the Iowa-based futures dealer than folded in July after the firm's founder said in a note left before his attempted suicide that he'd used a color printer to hide that his company's bank account was missing some $200 million in client funds.</p>
<p>Lost assets included 304 silver coins depicting characters from the children's TV show <em>SpongeBob SquarePants</em>, valued at about $20,000; Found assets included a baseball glove signed by former New York Yankees manager Joe Torre and baseball hall-of-famer Johnny Bench, all of which may sounds strange if you haven't been following the saga, which has included tales of Peregrine founder Russell Wasendorf's <a href="http://online.wsj.com/article/SB10001424052702304373804577521191579035590.html">shotgun wedding</a>, <a href="http://blogs.wsj.com/deals/2012/07/17/excerpts-from-russell-wasenforf-sr-s-confession/">wizardry with Adobe Photoshop</a> and catastrophic experience in <a href="http://www.reuters.com/article/2012/07/13/us-pfgbest-wasendorf-romania-idUSBRE86C03Y20120713">Romanian real estate</a>. <!--more-->Still, you take what you can get, and today the Peregrine trustee got $700,000 from the National Futures Association, an amount equal to the fine paid by Peregrine to the self-regulating organization in February. According to <a href="http://online.wsj.com/article/SB10000872396390444017504577645750763125344.html?mod=googlenews_wsj"><em>The Wall Street Journal:</em></a></p>
<blockquote><p><em>The fine was part of a settlement of charges related to an alleged Ponzi scheme run by a customer of the brokerage. The agency charged that Peregrine didn't properly monitor and report suspicious activity, and the firm agreed to the fine without admitting or denying the allegations.</em></p></blockquote>
<p>Now, if we could only track down that crafty real estate agent.</p>
<p><strong>Update: </strong>Mr. Wasendorf has reached a plea deal in which "he <a href="http://www.bloomberg.com/news/2012-09-11/peregrine-s-wasendorf-signs-plea-deal-fbi-agent-tells-court.html">admits to mail fraud</a>, embezzlement and making false statements," according to Bloomberg.</p>
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