Five Regulators Move Volcker Rule Deadline to Oct. 17 Securities industry participants will get more time to weigh in on the very controversial Dodd-Frank Era “Volcker Rule,” which in its initial form prohibits proprietary trading and banks from owning hedge funds or private equity funds. Five federal financial regulatory agencies have agreed to extend until… Read More >>
Moody’s Settles Charges of Inadequate Internal Controls
Moody’s Investors Service Inc. will be paying $16.25 million in penalties to the SEC via two regulatory orders that resolve charges that the credit rating agency had inadequate internal controls that ultimately led to 650 incorrect residential mortgage-backed securities (RMBS) ratings, representing a notional value of more than $49 billion. The Moody’s case “marks the… Read More >>
How Three Traders Allegedly Caused $81M in Losses
The SEC reports that Citigroup recently agreed to pay $10.5 million in penalties to settle charges involving its books and records, its internal accounting controls, and its trader supervision. Citigroup Inc. and its U.S. broker-dealer subsidiary, Citigroup Global Markets Inc. (CGMI), also will pay a $5.75 million penalty to settle the inaccurate books and records… Read More >>
Legg Mason Settles SEC Bribery Case for $34M
Asset manager Legg Mason Inc. will pay more than $34 million to settle the SEC allegations that the firm engaged in a bribery scheme via government officials in Libya that was in clear violation of the Foreign Corrupt Practices Act (FCPA). Legg Mason is charged with violating “the internal accounting controls provision of the Securities… Read More >>
Time for a Crypto Cop?
Many people have been wondering when the controversial crypto currency phenomenon will get the regulatory oversight needed to provide safeguards for investors and other participants. In the U.S., the SEC and CFTC are pursuing guidelines and enforcement actions as the crypto efforts move full speed ahead. I’m certain that the regulators would appreciate additional help… Read More >>
Citigroup Pays $10.5M to Resolve Rogue Traders Case
The Securities and Exchange Commission (SEC) reports that Citigroup has agreed to pay $10.5 million in penalties to settle two enforcement actions involving its books and records, its internal accounting controls, and its trader supervision. The charges stem from $81 million in losses due to trader mismarking and unauthorized proprietary trading, and $475 million in… Read More >>
CRD & Broadridge Partner to Bolster SWIFT Links
CRD’s IMS to Get New Broadridge Support Charles River Development (CRD) and Broadridge Financial Solutions are formalizing a business alliance to facilitate broader integration with the SWIFT financial messaging network for the Charles River Investment Management Solution (Charles River IMS), officials say. The partnership is in response to the industry’s move, sanctioned by the SEC,… Read More >>
BGC Financial Settles Recordkeeping Case with SEC
New York-based BGC Financial allegedly violated federal securities laws that require broker-dealers to maintain accurate books and records and promptly provide records requested by SEC staff, according to a recent SEC cease-and-desist order. The interdealer broker has agreed to pay a $1.25 million penalty to settle the SEC’s charges that it “failed to preserve audio… Read More >>
Credit Suisse in Hong Kong Settles FCPA Charges
The Hong Kong-based subsidiary of the Credit Suisse Group AG (CSAG), a Swiss-based issuer of publicly traded securities in the United States, has reached an agreement with the U.S. Department of Justice to pay a $47 million criminal penalty for its role in a scheme to “corruptly win banking business” in the Asia-Pacific region by… Read More >>
SEC Filers Must Move to Inline XBRL
Amid the flurry of news about tariffs, scandals, mergers and trade wars, the SEC quietly adopted rule amendments that will require the implementation of the Inline eXtensible Business Reporting Language (XBRL) format “for the submission of operating company financial statement information and fund risk/return summary information,” according to the SEC. The amendments are expected “to… Read More >>
