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jerryking : sec   22

Nortel hacking went on for years
FEBRUARY 14, 2012 | FT Alphaville | By Joseph Cotterill.
Chinese hackers had undetected access to sensitive Nortel data for almost a decade from 2000, the WSJ reports. The extent to which Nortel, the once-mighty telecoms giant, was compromised shows the lack of corporate defences against hacking. Nortel didn’t disclose its hacking problem to buyers of its assets. Spy software was so deeply embedded in Nortel computers that investigators failed to spot its existence for years. The SEC last year began pushing companies to classify serious cyber attacks on their infrastructure as “material risks” that may require financial disclosure.
China  Chinese  cyberattacks  cyber_security  cyberintrusions  disclosure  hackers  Nortel  regulators  risks  SEC 
march 2019 by jerryking
SEC Chief Wants Investors to Better Understand Cyberrisk - WSJ
Sept. 5, 2017 | WSJ | By Dave Michaels.

The chairman of the Securities and Exchange Commission said Tuesday that regulators and Wall Street need to do more to educate investors about the serious risks that companies and the financial system face from cyberintrusions.

Jay Clayton, speaking at an event sponsored by New York University’s School of Law, said investors still don’t fully appreciate the threat posed by hackers. “I am not comfortable that the American investing public understands the substantial risk that we face systemically from cyber issues and I would like to see better disclosure around that,” Mr. Clayton said.
SEC  cyber_security  cyberthreats  cyberrisks  risks  hackers  cyberintrusions  regulators  Wall_Street  data_breaches  disclosure  under_appreciated  financial_system 
september 2017 by jerryking
Law firms will pay price for failure to hold off hackers | Evernote Web
31 December/1 January 2017 | Financial Times | Brooke Masters.

"This case of cyber meets securities fraud should serve as a wake-up call for law firms around the world: You are and will be targets of cyber hacking, because you have information available to would-be criminals," Bharara said in a statement....Other professional services firms should take note. This is not the first time the industry has been hit by hackers who specialise in what is becoming known as "outsider trading"....Accounting firms that provide tax advice on mergers, boutique advisory forms, and consultants who weigh in on synergies and downsizing plans are almost certainly on the criminals' hit list....Professional service firms will not be so lucky. Banks and companies pay extremely high prices for outside advice. They expect professionalism and confidentiality in return. Getting hacked by a bunch of Chinese traders is hardly a strong recommendation of either.
Big_Law  Chinese  confidentiality  cyber_security  cyberattacks  hackers  hacking  law_firms  M&A  malware  mergers_&_acquisitions  Preet_Bharara  professional_service_firms  SEC  security_consciousness  securities_fraud  traders 
january 2017 by jerryking
Meet the SEC’s Brainy New Crime Fighters - WSJ
Updated Dec. 14, 2014

The SEC is mustering its mathematical firepower in its Center for Risk and Quantitative Analytics, which was created last year soon after Mary Jo White took charge of the agency to help it get better at catching Wall Street misconduct. The enforcement unit, led by 14-year SEC veteran Lori Walsh, is housed deep within the warrens of the SEC’s Washington headquarters, and staffed by about 10 employees trained in fields such as mathematical finance, economics, accounting and computer programming.

Ms. Walsh says access to new sources of data and new ways of processing the data have been key to finding evidence of wrongdoing. “When you look at data in different ways, you see new things,” she said in an interview
alternative_data  analysis  analytics  arms_race  data  data_driven  enforcement  fresh_eyes  hiring  information_sources  mathematics  misconduct  models  modelling  patterns  perspectives  quantitative  quants  SEC  stockmarkets  Wall_Street 
december 2014 by jerryking
Insider Trading Persists, and Gets Stealthier -
Published: December 7, 2012

Why has insider trading proved so persistent, even in the face of prosecutions and popular Hollywood films like “Wall Street”?

The risk-versus-reward equation that has always been a factor in financial markets has changed drastically in the last 20 years....many people who work in financial markets “are highly skilled at cost-benefit analysis,” Mr. Bharara told me. “They’re highly intelligent. They’ve been to the best schools. They weigh the risk of getting caught against the potential reward, and they decide it’s worth the risk. We’re trying to tilt that equation.” There’s no doubt that the potential for gain “has soared,” Robert S. Khuzami, head of enforcement at the S.E.C., told me, and not because there are more takeovers and other market-moving events to trade on. “That’s a big change from the 1980s and ’90s. Hedge funds can take massive positions, use short-selling and derivatives, and employ trading techniques that aren’t transparent, and make huge amounts of money on small fluctuations on price. They don’t need to hit a home run on a $20 pop on a takeover announcement. These bets may be bunts and singles, but they get to the same place.”...The pressure to get an “edge,” as hedge fund traders often put it, has never been greater...In the wake of the Milken-Boesky era, the government has become sophisticated at monitoring major market-moving events like takeover announcements, to the point that insider trading on major corporate news has become relatively rare ...Although some critics say the S.E.C.’s expertise has lagged advances in areas like high-frequency trading, the enforcement division has made progress in monitoring suspicious trading. “We’ve created databases to see who is trading in tandem, even if you know nothing about an event,” Mr. Khuzami said. “It’s a trader-based approach, not an issuer-based approach. These trading patterns are the first clue to what might be insider trading rings. You then have to do the real detective work, pulling phone records and e-mails and using other techniques to uncover the links. ”
highly_skilled  insider_trading  Wall_Street  financiers  hedge_funds  Preet_Bharara  deterrence  Bay_Street  SEC  enforcement  patterns  misconduct  cost-benefit_analysis  slight_edge  trading  stealth  prosecutors  investigative_workups 
december 2012 by jerryking
Vulture Funds Serve Purpose
Dec 20, 2006 | National Post | Marie Beaudette.

Harbinger said Crescent declared "thermonuclear war” by resisting the hedge fund's advances. But the rule of

mutually assured destruction doesn't apply in bankruptcy: Crescent eventually conceded to a hedge fund determined to win.
Regulators are starting to question the role hedge funds play in Chapter 11 cases. The Securities and Exchange Commission has expressed concern about whether hedge funds have lied to gain leverage in bankruptcy cases and traded on sensitive information gained through the process.
New York University Professor Edward Altman estimates there are at least 160 investment funds in the US. specializing in distressed-company securities. "A new breed of distressed-debt investors, called ‘vulture funds,‘ has emerged as one of the fastest- growing sectors of the burgeoning hedge fund and private equity field," Mr. Altman wrote in a recent study.
vulture_investing  bankruptcies  distressed_debt  restructurings  SEC 
september 2012 by jerryking
U.S. Targets Insider Culture in Gupta Case -
OCTOBER 27, 2011 | WSJ | By MICHAEL ROTHFELD, SUSAN PULLIAM and S. MITRA KALITA. Gupta Case Targets Insider Culture
Gupta Indictment Shows New Twist in Crackdown; Case Is Gamble for Prosecutors
McKinsey  insider_trading  SEC  Wall_Street  prosecutors  Rajat_Gupta  P&G  Goldman_Sachs  Preet_Bharara  Department_of_Justice 
october 2011 by jerryking
Lawyers at odds over Rajaratnam’s profits -
October 4, 2011 | FT | By Kara Scannell in New York.

US prosecutors and lawyers for Raj Rajaratnam, the convicted founder of Galleon Group, squared off in court on Tuesday over how to measure profits the hedge fund founder made from insider trading.

The judge asked the government to submit additional profit calculations and said he would announce his ruling at next Thursday’s sentencing hearing.
On this story
Prosecutors say Mr Rajaratnam should serve between 235 and 293 months, or a minimum sentence of 19 ½ years, based on gains they now allege exceeded $70m and enhancements for being a leader of the conspiracy and obstructing the government’s investigation during an interview with the Securities and Exchange Commission.

Mr Rajaratnam’s lawyers argued that a better estimate was $7.4m in personal gains, which would place his sentence without any enhancements between six and eight years.
Raj_Rajaratnam  insider_trading  legal_strategies  sentencing_guidelines  SEC  Wall_Street  hedge_funds 
october 2011 by jerryking
In the Insider Trading War, Market-Beaters Beware -
Sep 22, 2011 |NYT|ROGER LOWENSTEIN.A problem with the SEC’s
focusing on high-return funds is that it skates over the crucial
distinction between short- & LT investing. Some of the 8,000+ hedge
funds in the US are engaged in rapid-fire trading —trying to outguess
the competition w.r.t disclosures that’ll become public in a week.Some
are obsessed with trying to outguess Wall Street “whisper
numbers”.Absent tips regarding forthcoming news, their managers have no
value added/edge. For investors working longer horizons the picture is
different.Skillful, L.T. investors can make $ without tips, by analyzing
info. that’s already public...Society has an interest in genuine
research (e.g. whether GOOG will be a more dominant biz.)...Hedge fund
hypertrading doesn’t add to economic output--it ratchets up mkt.
volatility...A marked increase in volatility complicates the SEC’s
job...the payoff for trading on insider tips rises as well.Ferreting out
the prescient & the crooked becomes more important.
insider_trading  insider_information  SEC  Roger_Lowenstein  white-collar_crime  Wall_Street  hedge_funds  SAC_Capital  volatility  long-term  investing  personal_payoffs 
september 2011 by jerryking
Nice Guys, Naughty Information? -
NOVEMBER 24, 2010 | Wall Street Journal | Holman W. Jenkins,
Jr. The SEC wants to help small investors? Stop trying to criminalize
SEC  insider_information  insider_trading  sleuthing  investors 
november 2010 by jerryking
U.S. Pursues Sweeping Insider-Trading Probe -
NOVEMBER 20, 2010 | Wall Street Journal | by SUSAN PULLIAM,
authorities, capping a three-year investigation, are preparing
insider-trading charges that could ensnare consultants, investment
bankers, hedge-fund and mutual-fund traders, and analysts across the
nation, according to people familiar with the matter....The criminal and
civil probes, which authorities say could eclipse the impact on the
financial industry of any previous such investigation, are examining
whether multiple insider-trading rings reaped illegal profits totaling
tens of millions of dollars, the people say...The investigations have
been conducted by federal prosecutors in New York, the FBI and the
Securities and Exchange Commission. Representatives of the Manhattan
U.S. Attorney's office, the FBI and the SEC declined to comment.
insider_trading  hedge_funds  mutual_funds  prosecutors  FBI  SEC  expert_networks  Wall_Street  misconduct 
november 2010 by jerryking
The Regulation Crisis: A failure of economic and environmental regulation
June 14, 2010 | The New Yorker | by James Surowiecki.
As Carpenter argues in a recent essay, successful regulation, by filling
information gaps and managing risk, fosters confidence in the safety
and honesty of markets, which in turn makes them bigger and more robust.
The pharmaceutical industry, for instance, would be much smaller if
people were seriously worried that they might be poisoned every time
they took a new drug. And though executives chafe at financial
regulation, the protection it provides makes investors far more likely
to hand them money to play with. If we want our regulators to do better,
we have to embrace a simple idea: regulation isn’t an obstacle to
thriving free markets; it’s a vital part of them.
BP  confidence  consumer_protection  economics  environment  financial_regulation  free_markets  information_gaps  investors  James_Surowiecki  oil_spills  pharmaceutical_industry  politics  regulation  regulators  SEC 
june 2010 by jerryking
SEC Chief's Big Bet on Goldman -
MAY 15, 2010 | Wall Street Journal | By MONICA LANGLEY , KARA
decided to pursue Goldman and how the Wall Street giant responded is
based on dozens of interviews with regulators, executives, traders,
lawyers and other people with knowledge of the situation....The suit is
shaping up as one of the most explosive confrontations in Wall Street
history, pitting the world's most profitable securities firm against a
regulatory agency with a battered reputation as a watchdog. The decision
to proceed without unanimous agreement from the commissioners—unusual
in such a high-profile case—exposed the agency to accusations that its
actions were influenced by politics despite its nominally independent
status. The agency denies any political agenda.
Goldman_Sachs  SEC  Wall_Street  decision_making  legal_strategies  lawsuits  big_bets 
may 2010 by jerryking
What Any Goldman Settlement Might Entail - DealBook/White Collar Watch Blog -
May 6, 2010 | NYT | by Peter J. Henning who's working on a
book, “The Prosecution and Defense of Public Corruption: The Law &
Legal Strategies,” by Oxford Univ. Press. What might it take for GS to
resolve its various lawsuits & inquiries? Threats? 3-fold: (1) SEC's
lawsuit; (2) a slew of private shareholder suits that largely piggyback
the S.E.C. claims; (3) a DoJ investigation. The SEC’s fraud case
presents the most immediate threat to GS, DoJ investigation could have
the greatest impact if it develops into a full-blown threat of
prosecution, while the private suits are of less importance as they pose
little if any threat to the GS’s continuing operations. For the SEC:
($=monetary penalties), appt. of an outside monitor to oversee GS’s
compliance with the terms of the settlement, require GS to appoint a
different person as chair; For the DoJ --difficult for GS to negotiate
some type of resolution; For Private Litigants there's whether the GS
board breached its fiduciary duty.
anticipating  books  corruption  Department_of_Justice  financial_penalties  Goldman_Sachs  legal  legal_strategies  SEC  think_threes  white-collar  white-collar_crime 
may 2010 by jerryking
Author Zuckerman on Goldman case - The Globe and Mail
April 19, 2010 | Globe and Mail | Joanna Slater. Interviews
Gregory Zuckerman, author of The Greatest Trade Ever: The
Behind-the-scenes Story of How John Paulson Defied Wall Street and Made
Financial History.

New York — From Monday's Globe and Mail Published on Sunday, Apr. 18,
John_Paulson  hedge_funds  book_reviews  Goldman_Sachs  SEC  financial_history 
may 2010 by jerryking
Goldman Slapped
April 22, 2010 | BusinessWeek | By Jonathan Weil. A civil
suit and a Senate scolding won't be enough to make Wall Street's
wealthiest firm fly right. Article provides excellent analysis of the
role of each of the players in the upcoming SEC-GS civil suit.
Lloyd_Blankfein  Goldman_Sachs  forward_looking  analysis  due  SEC 
april 2010 by jerryking
Underlying Goldman Deal, a Different Set of Risk-Takers -
APRIL 22, 2010 | Wall Street Journal | By CARRICK MOLLENKAMP ,
SEC  allegations  hedge_funds  Goldman_Sachs  fraud  risk-taking  big_bets 
april 2010 by jerryking

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