A former Credit Suisse banker was arrested in London today, according to The Wall Street Journal nearly six months after being indicted by U.S. prosecutors for allegedly faking data to boost end-of-year bonuses.
In February, U.S. Attorney Preet Bharara charged Kareem Serageldin, a former global head of the Swiss bank’s collateralized debt obligation business, with masterminding a scheme to mismark positions in asset-backed securities, helping Mr. Serageldin and his traders meet targets linked to annual bonuses.
So the buck stops … here? After technical glitches at Nasdaq on the day of Facebook’s initial public offering cost market makers millions of dollars, a pattern emerged. Nasdaq would offer to make good on some part of the losses, the market makers would grumble that said offer was unsatisfactory, and Nasdaq would come back with something a little bit better.
Former Goldman Sachs and UBS trader Haim Bodek went to the SEC after he learned that exchanges were offering some high-frequency traders a way to get their trades processed ahead of ordinary investors, according to The Wall Street Journal.
Goldman Sachs’ Chief Financial Officer David Viniar will retire at the end of January, Read More
Cops and robbers
It’s hard to imagine a more terrifying prospect than a 30-year-old trader risking billions in unauthorized speculative bets at that the same time his own personal finances spiraled out of control. Which is of course what prosecutors say happened in the case of Kweku Adoboli, the former UBS trader who squandered billions when unhedged positions turned against him. Indeed, as Mr. Adoboli was risking as much as $12 billion for UBS, he was losing hundreds of thousands of dollars in personal trading accounts that violated the firms rules.
cost of living
The victims of a May home invasion in Westchester County were a former UBS co-head of U.S. mergers and acquisitions and his wife, according to press accounts.
Last Thursday, the Department of Justice announced charges against a Bartek Zajkowski, a Polish national the government accused of accosting two victims during a home invasion in Bedford Hills. According to a criminal complaint, Mr. Zajkowski encountered his male victim outside the house, binding the man with duct tape and plastic ties before seeking valuables inside; there, he encountered the first victim’s wife, who he shot in the stomach with a BB gun.
While the Justice Department didn’t identify the couple, Bedford police told Newsday that the victims were Leonardo “Lee” LeBrun and his wife Lara; LoHud.com identified Mr. LeBrun as a former co-head of M&A for UBS Americas. Mr. LeBrun retired from the Swiss bank in May 2011 at the age of 44 to spend more time with his family.
What does $2.3 billion mean, really? What can it buy, where would you keep, how does it taste, what’s its circumference? These are not questions for most of us. These aren’t questions for anyone, really, save Sasha Wass, the British prosecutor tasked with explaining how former UBS trader Kweku Adoboli managed to lose such a colossal amount of money.
Morgan Stanley and Citigroup agreed to value Morgan Stanley Smith Barney at $13.5 billion, more than the outside bankers hired to mediate the deal said the joint venture brokerage was worth. 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.
Nasdaq may be planning to sweeten its compensation offer to entities that suffered losses due to technical problems at the exchange on the day of Facebook’s initial public offering, The New York Post reports, which would fit the pattern: Nasdaq makes an offer, the market makers—Citigroup, UBS, Citadel and Knight—talk tough, Nasdaq ups Read More
The New York State Department of Financial Services, which threatened to revoke Standard Chartered Bank’s license this week over allegations the firm conducted $250 billion in transactions with Iranian banks, is talking settlement with the British bank, according to The New York Post.
Standard Chartered’s lawyers believe there’s a case to sue DFS Read More
Faceplant: UBS saw profit fall 58 percent in the second quarter. The firm wasn’t helped by a $356 million loss connected to Facebook’s initial public offering, in which technical glitches at Nasdaq caused UBS to buy more shares than its clients had ordered. “We will take appropriate legal action against Nasdaq to address Read More