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SEC Charges Reserve Management Co., Others, With Fraud For Disclosures Related to “Breaking the Buck”
The troubles continue to mount for the The Reserve Primary Fund., the money market fund that “broke the buck” on Sept. 16, 2008 and quickly became a defendant in numerous securities class actions. Today, the SEC announced that it has filed an enforcement action charging the entities and individuals who operate The Reserve Primary Fund [...]
SIPC President Says $2.6 Billion Will Cover all Legitimate Madoff Claims; Victims Disagree With Formula Used
Stephen Harbeck, president of the Securities Investor Protection Corp., has now stated that the $2.6 billion SIPC has on hand is enough to satisfy all legitimate claims by victims of Bernard Madoff’s Ponzi scheme. Bloomberg reports that Harbeck’s position is based on a formula with which Madoff investors take great issue. SIPC’s decision, first announced [...]
Madoff Bankruptcy Trustee Uncovers Assets in Gibraltar
Irving Picard, the trustee appointed by the bankruptcy court to identify Bernard Madoff’s assets, has reportedly found assets in the British territory of Gibraltar. The Daily News reports that David Sheehan, an attorney working for Picard, has asked Bankruptcy Judge Burton Lifland to let the trustee hire some English lawyers familiar with Gibraltar law to [...]
Madoff Trustee Says No Securities Purchased for Madoff Customer Accounts in at Least 13 Years
At a hearing for Madoff investors today, Irving Picard, the trustee overseeing the liquidation of Madoff’s assets, stated that there was “no evidence to indicate securities were purchased for customer accounts” in at least 13 years. The AP reports that at the meeting, which was held at the U.S. Bankruptcy Court in Manhattan, David Sheehan, [...]
Fox Business Video: Madoff Bankruptcy Trustee Will Seek “Clawbacks” Going Back Six Years
Fox Business News’ Adam Shapiro reports in this video that sources close to the Madoff bankruptcy proceedings say that the bankruptcy trustee will soon seek to clawback money from investors who withdrew money from the Madoff firm over the past six years.
“Clawback” Threat in Madoff Case Creates Tricky Issues in Bankruptcy
The issue of how “clawback” efforts by the trustee in the Madoff bankruptcy should work is generating considerable attention lately. Investment News reports that a whole host of investors might be demanded by the trustee to give up whatever gains they received over the past six years, which in turn may spark civil litigation that [...]
WSJ Video: Lehman Bros. an Unlikely Island of Job Security on Wall Street
In an odd stroke of irony, the WSJ reports that perhaps the most secure job on Wall Street right now is at Lehman Brothers, where hundreds of people will be needed for several years to unwind the company.
Class of 33,000 from Hong Kong Plans Securities Class Action Against HSBC for Lehman Losses
A group of 33,000 Hong Kong investors in Lehman Brothers-backed financial products plans to file a securities class action in the U.S. against HSBC, after Lehman’s collapse left their investments possibly worthless. The AP reports that the lawsuit is expected to be filed this month in New York against HSBC for its role in distributing [...]
Jenner & Block’s Anton Valukas Selected as Examiner in Lehman Brothers Bankruptcy Case
Anton Valukas has been selected today as the examiner in the Lehman Brothers bankruptcy case. Valukas is an attorney and the chairman of the law firm Jenner & Block, and was formerly U.S. attorney for the Northern District of Illinois. The AP reports that Valukas’ investigation will help determine whether Lehman executives lied, committed fraud [...]
Mass. Securities Regulator Files Fraud Claim Against Reserve Management
The hits keep coming for Reserve Management Co., the mutual fund that “broke the buck” back in September 2008. On Tuesday, Massachusetts’ top securities regulator accused Reserve executives in an administrative complaint of misrepresenting the fund’s safety in an ultimately futile bid to prevent investors from pulling out cash. The company has already been the [...]